Insight from the frontlines

Tika Lum currently serves as Global Business Development Head at KuCoin, playing a pivotal role in shaping the exchange’s international strategy and partnerships. With a background that blends extensive experience in digital assets and a clear understanding of institutional requirements, he brings a perspective that connects traditional financial rigor with the opportunities emerging in Web3. His leadership focuses on building bridges between high-level trading infrastructure and the everyday user experience, ensuring that KuCoin’s global presence aligns with diverse regulatory landscapes and evolving market expectations.

Under his view, the next phase of the crypto industry depends on strengthening trust through innovation anchored in compliance and transparent governance. For Tika, developing secure, adaptable solutions is essential not only for institutional confidence but also for creating a resilient environment where retail and professional traders alike feel protected and empowered. His approach highlights the belief that digital asset platforms must evolve beyond speed and liquidity to become robust partners in a market that demands both flexibility and responsibility.

Foundations of a global exchange

KuCoin has established itself as a major participant in the global cryptocurrency exchange market, attracting millions of users by offering a comprehensive suite of trading products and services. Its platform is known for its user-friendly interface and innovative features, which contribute to its growing reputation as one of the leading exchanges worldwide. KuCoin’s ability to adapt quickly to industry changes has been a key factor in its sustained growth and competitive positioning.

At the heart of KuCoin’s strategic evolution is the $2 Billion Trust Project, a long-term commitment dedicated to creating a transparent, reliable, secure, and compliant platform, with advanced asset custody standards. This initiative underscores KuCoin’s proactive approach to meeting regulatory requirements while ensuring a trustworthy and protected environment for its 41 million users. By implementing institutional-grade safeguards, it aims to build long-term confidence among both retail investors and institutional participants.

A significant aspect of this initiative is KuCoin’s adoption of the Off-Exchange Settlement (OES) model, which separates custody from trading execution through partnerships with regulated third-party custodians. This model addresses common industry challenges such as counterparty risk and regulatory compliance, providing granular control and auditability for asset management. By implementing this framework, KuCoin positions itself to serve a diverse user base, from everyday traders to large institutional clients, while supporting scalable and compliant growth.

A new chapter in institutional custody

The Off-Exchange Settlement (OES) model adopted by KuCoin represents a significant shift in how digital assets are securely managed and traded by institutional investors. By separating custody from trade execution, OES offers enhanced control and transparency, allowing institutions to maintain full oversight of their assets while benefiting from efficient and fast trading capabilities. This architecture addresses critical concerns such as counterparty risk and regulatory compliance, which are paramount for institutional participants.

KuCoin’s partnership with BitGO Singapore is a cornerstone of this approach, providing robust cold storage solutions that ensure assets are held securely with multi-signature key isolation and stringent regulatory oversight. The custodial service also includes comprehensive insurance coverage and regular independent audits, further reinforcing trust and risk mitigation. This segregation of custody and execution creates a resilient infrastructure that aligns with institutional mandates for security and compliance.

From Tika’s perspective, KuCoin’s decision to partner with a licensed third-party custodian represents a deliberate strategy to build greater trust and neutrality in the market. Unlike some other exchanges that use vertically integrated custody models, KuCoin’s horizontal integration reduces operational risk and aligns closely with institutional expectations. Tika emphasizes that this approach not only differentiates KuCoin but also sets a new standard for scalable, secure, and compliant infrastructure in the evolving crypto landscape.

Market impact and user benefits

The adoption of the Off-Exchange Settlement (OES) model represents a pivotal shift in digital asset custody, providing substantial advantages not only for institutional investors but also for high-net-worth individuals and, indirectly, retail participants. By offering granular control over asset custody and trade execution, OES reduces counterparty risks and enhances compliance, creating a more secure and transparent trading environment. While retail traders may not require the full scope of custodial services, the elevated security standards and robust infrastructure driven by institutional-grade solutions inevitably raise the baseline of safety for all users, fostering greater confidence across the market.

Central to KuCoin’s strategy is the Trust Project, a comprehensive and ongoing framework designed to embed transparency, compliance, and resilience into every aspect of the platform. Through rigorous certifications such as ISO 27001 and SOC 2 Type II, along with regular proof-of-reserve attestations and independent audits by Hacken, KuCoin continuously demonstrates its commitment to security and regulatory alignment. This sustained focus on trust-building elevates industry standards and positions KuCoin as a leading example of how exchanges can responsibly manage risk while supporting long-term growth in the crypto ecosystem.

Building trust for the future: KuCoin’s roadmap and vision

KuCoin’s future strategy centers on broadening its custody partnerships beyond the current collaboration with BitGO Singapore, aiming to integrate a diverse range of globally regulated custody providers to strengthen its infrastructure and mitigate counterparty risks. This expansion reflects KuCoin’s ambition to set a new industry standard for institutional trust and security, particularly in a post-FTX landscape where transparency and regulatory compliance have become non-negotiable pillars. As emphasized by Tika Lum, the commitment goes beyond short-term metrics or isolated initiatives; it is about constructing a resilient, transparent, and scalable platform capable of evolving alongside market demands and regulatory frameworks. KuCoin’s vision is clear: to be recognized not just as a leading exchange but as a reliable foundation where institutions and users alike can confidently navigate the crypto ecosystem with assurance and longevity.