Digital asset custodian Cactus Custody announced the rollout of a new institutional-grade self-custody platform built on Multi-Party Computation technology, responding to growing demand for secure asset control without dependence on centralized custodians. The company indicated that institutional participants are increasingly seeking solutions that provide direct ownership of digital assets while preserving strong security and regulatory compliance standards.
The newly launched platform is designed to allow clients to maintain full control over their assets, eliminating reliance on third-party custodians. At the same time, it incorporates compliance-ready integrations with established anti-money laundering and Travel Rule technology providers. According to the firm, this dual focus aims to address one of the core challenges facing institutions operating in digital asset markets, which is balancing autonomy with regulatory obligations.
MPC Technology Enhances Security Architecture
Cactus Custody explained that Multi-Party Computation has become one of the most widely adopted security frameworks in digital asset management. Unlike traditional custody models, where private keys are stored in a single location, MPC technology divides cryptographic keys into multiple encrypted shares. These shares are distributed across separate environments, ensuring that no single point of compromise can expose the entire key.
By adopting MPC, the company stated that it seeks to significantly reduce the risks associated with key theft or internal misuse. The approach is positioned as particularly suitable for institutions that require a high level of operational resilience while retaining complete authority over fund management. The platform is intended to support organizations that prioritize self-sovereignty and infrastructure robustness as part of their digital asset strategy.
Compliance-Ready Integrations for Institutions
Beyond security, Cactus Custody emphasized that regulatory compliance remains a central concern for institutional participants. The self-custody platform integrates with anti-money laundering and Know-Your-Transaction tools, including solutions from Chainalysis. These integrations allow clients to monitor on-chain activity, assess transaction risk, and align with regulatory expectations across jurisdictions.
Travel Rule compliance is also built into the platform through integrations with providers such as Notabene. This functionality enables institutions to exchange required transaction information with counterparties, supporting compliance as global regulatory frameworks continue to evolve and tighten. The firm suggested that these features make the platform suitable for institutions operating in heavily regulated environments.
Cactus Custody is integrating Circle’s USDC infrastructure to improve institutional operational efficiency.
The integration enhances workflow interoperability for digital asset operations, helping institutions streamline processes with institutional-grade security and… pic.twitter.com/K0QkS7XoGo
— Cactus Custody (@CactusCustody) December 2, 2025
USDC Infrastructure and Operational Interoperability
Cactus Custody also highlighted its broader efforts to enhance institutional workflows. In December, the company announced a collaboration with an affiliate of Circle Internet Group aimed at improving access to USDC for institutional clients. As part of this initiative, Cactus integrated Circle’s USDC infrastructure into its systems.
The company stated that this integration improves interoperability across digital asset operations, allowing institutions to manage stablecoin-related activities more efficiently. By streamlining workflows and settlement processes, the firm aims to reduce operational friction for clients managing complex digital asset portfolios.
Flexible Approach to Client Needs
Daniel Lee, chief executive officer of Cactus Custody, explained that the new product is designed for a wide range of institutions that favor self-custody over centralized custodial models. He noted that many organizations prefer maintaining direct control of assets rather than delegating custody to third parties, particularly in an environment where counterparty risk remains a concern.
Lee also indicated that compliance tooling within the platform is designed to be flexible. While Chainalysis is available as an option for meeting Know-Your-Transaction requirements, the platform can accommodate alternative on-chain analytics providers if clients prefer different vendors. This modular approach is intended to ensure that institutions can tailor compliance workflows to their internal policies and regulatory environments.
Overall, the launch of the MPC-based self-custody platform reflects Cactus Custody’s strategy to support institutional adoption of digital assets through secure, compliant, and customizable infrastructure that aligns with evolving market and regulatory demands.
