Daniel Lee Appointed CEO of Cactus Custody as Company Grows Institutional Cryptocurrency Offerings

Daniel Lee, a prominent figure in institutional digital assets and the former Head of Web3 at Banking Circle, is set to embark on a new leadership journey as CEO of Cactus Custody starting January 2026, while also taking on advisory roles with Matrixport and Banking Circle.

In an exclusive discussion with CryptoNews, Lee shares insights on the swift maturation of digital assets within institutional frameworks, custody solutions, and tokenized financial instruments.

Lee’s entry into the crypto space was not driven by market hype or speculative trends. Instead, it stemmed from a practical observation: his clients were advancing ahead of the banks. This realization would shape the trajectory of his career over the next decade.

Transitioning from Traditional Finance to Crypto-Centric Strategy

Lee characterizes his shift as a natural — perhaps unavoidable — evolution. At Banking Circle, a regulated financial infrastructure provider catering to payment, FX, and treasury requirements for institutions throughout Europe, Lee collaborated closely with asset managers, brokerages, and fintech companies that were adopting digital assets more rapidly than anticipated.

“What I observed was that institutional interest was not merely theoretical — it was operational,” he stated. Private wealth clients were inquiring about crypto allocations; hedge funds were participating in high-frequency digital asset trading; pension funds and family offices sought tokenized exposure.

“Traditional institutions have an obligation to facilitate emerging asset classes in a safe and transparent manner,” he remarked. “Banks and custodians serve as bridges — not barriers — between the old and new systems.”

His appointment at Cactus Custody aligns with this perspective. Established as the institutional infrastructure division within Matrixport, Cactus Custody caters to a worldwide clientele requiring regulated storage, tokenized settlement services, and connections to exchanges, liquidity venues, and DeFi platforms. As CEO, Lee will be responsible for enhancing these capabilities while advising Matrixport on market growth and institutional service development.

Cactus Custody operates as the institutional digital asset custody division of Matrixport, the crypto-financial services firm co-founded by industry pioneers Jihan Wu and John Ge.

DBS Digital Exchange: An Unexpected Proposal in 2018

One of Lee’s pivotal experiences occurred during his tenure at DBS, Singapore’s largest bank, where he suggested an idea that seemed unconventional for a traditional financial boardroom: a bank-owned crypto exchange. At DBS Digital Exchange, he served as Executive Director and Head of Business and Listing.

The concept emerged in 2018 — two years prior to the mainstream acceptance of institutional crypto. “It wasn’t an immediate approval,” Lee recalled. “There were apprehensions regarding regulation, risk, and brand image. Crypto was still perceived as experimental.”

Lee remembers that in 2018, long before digital assets gained institutional credibility, the chances of obtaining internal support at DBS were minimal. Crypto was still met with skepticism, and he could not simply arrange a meeting to present a proposal for a digital asset exchange. Thus, he employed a different strategy.

“I waited in the lift lobby at Marina Bay Financial Centre for the head of capital markets Eng Seat Moey,” he recounts. When she arrived, he seized the opportunity — delivering his pitch from the ground floor to the 44th, an elevator ride that served as his only feasible boardroom.

It was a combination of persistence, improvisation, and timing — the kind of determination that characterized the early institutional phase of crypto before it became fashionable, regulated, or accepted. “It took 18 months,” Lee noted, “but the pivotal moment came when we could objectively showcase client demand and the emergence of regulatory clarity.”

DBS Digital Exchange eventually launched, facilitating tokenized deposits, digital bonds, and institutional-grade custody — becoming one of the first bank-backed digital asset exchanges worldwide.

“That experience taught me that innovation within regulated environments isn’t about speed — it’s about alignment,” he stated. “When institutions embrace crypto, they introduce stability, governance, and

Stablecoins, Tokenized Deposits, and the Upcoming Wave of Adoption

Lee has consistently championed the significance of stablecoins and tokenized deposits as the forthcoming chapter in the internet of value.

“Tokenization is not just a buzzword — it addresses genuine inefficiencies,” he clarified. Whether facilitating fractional ownership of private market assets, enabling atomic trade settlements without intermediaries, or ensuring transparency through programmable compliance, tokenization alters the system’s logic.

A clear exploration of how stablecoins are evolving into a global financial utility and the infrastructure required to keep them secure, liquid, and accessible.
Moderated by @Tanzeel_Akhtar
Speakers:
Sam Elfarra | Community Spokesperson | Tron DAO
Daniel Lee | Head of Web3… pic.twitter.com/rhdqs3wr4D

— Binance (@binance) December 4, 2025

For Lee, institutional adoption is not about speculative capital — it represents operational capability:

• Private banks onboarding crypto wealth for clients
• High-frequency and quantitative firms trading digital assets
• Treasury desks exploring tokenized settlement more rapidly than anticipated
• Family offices seeking alternative yield with on-chain controls

“Whether viewed through the lens of savings, settlement, or securities — the movement remains consistent,” he stated. “Real-world assets on-chain are not a trend; they signify an infrastructure enhancement.”

Custody, Trust, and the Path Forward

As the digital asset landscape evolves, custody transcends mere vault storage — it encompasses transaction orchestration, compliance automation, and connectivity to tokenized ecosystems.

Lee envisions traditional custodians and crypto-native custodians converging rather than competing. “The question is no longer if institutions will participate,” he remarked. “It’s about whom they trust to assist them when they do.”

His new dual role — leading Cactus Custody while advising Matrixport — positions him to shape that intersection. “What we are constructing now is not speculative infrastructure — it’s financial infrastructure,” Lee stated. “The future of capital markets is not digital versus traditional; it’s digital plus traditional.”

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