OKX Appoints Standard Chartered as Third-Party Crypto Custodian for Institutional Services

OKX Appoints Standard Chartered as Third-Party Crypto Custodian for Institutional Services

Crypto exchange OKX has announced a strategic partnership with Standard Chartered appointing the global banking institution as a third-party crypto custodian specifically for its institutional services. This collaboration is set to enhance OKX’s existing offerings which already include advanced trading features robust risk management tools and specialized custody solutions designed for institutional investors.

The integration of Standard Chartered is anticipated to significantly bolster the security and reliability of OKX's custody solutions thereby attracting more institutional investors who are in search of secure asset management options. The partnership leverages Standard Chartered's extensive banking expertise and rigorous risk management framework to instill greater confidence among institutional clients in managing their digital assets.

Lennix Lai who serves as the Global Chief Commercial Officer at OKX stated that the decision to select Standard Chartered as an institutional custodian partner aligns with their objective of enhancing their service offerings and facilitating the integration of digital assets into the traditional financial ecosystem. Lai emphasized that Standard Chartered's global banking expertise and commitment to security are crucial in providing exceptional crypto services to institutional clients.

Recent research commissioned by OKX revealed that approximately 80% of traditional and crypto hedge funds utilize third-party custodians to manage their digital assets which underscores the importance of this partnership. The announcement comes as Standard Chartered has launched its own crypto custody services in the United Arab Emirates a market known for its balanced approach to digital asset regulation.

The Dubai Financial Services Authority has granted Standard Chartered a license to operate within the Dubai International Financial Centre where the bank has already onboarded Brevan Howard Digital as its inaugural client. Currently the new custodial service supports Bitcoin and Ethereum and is part of Standard Chartered's broader strategy to expand its digital asset offerings including plans to incorporate additional cryptocurrencies and explore opportunities in other major financial centers.

In a related development OKX has selected Malta as its hub for Markets in Crypto-Assets compliance within the European Union. The choice of Malta is attributed to its strong regulatory standards and progressive stance on blockchain technology and cryptocurrencies. Additionally OKX already has personnel and infrastructure established in Malta making it a practical choice for their MiCA hub.

Recently OKX secured a Major Payment Institution license in Singapore allowing the exchange to provide an array of financial services. This license enables OKX to process payments beyond the previous cap of 3 million Singaporean dollars for single services and the 6 million Singaporean dollars limit for multiple services.

Moreover OKX officially launched its operations in Australia in May providing spot trading for all users and derivatives trading for verified wholesale clients. In June the platform introduced a crypto trading platform alongside a Web3 wallet in the Netherlands. However the exchange has opted to withdraw its Virtual Asset Service Provider license application in Hong Kong ceasing its services there.