OKX taps Standard Chartered as crypto custodian for institutional clients

As a seasoned crypto investor with a keen eye for industry developments, this partnership between OKX and Standard Chartered strikes me as a strategic move that could potentially reshape the institutional landscape of the digital asset world. My personal experience has taught me that the integration of traditional finance giants into the crypto sphere can bring about greater legitimacy, stability, and security – factors that are crucial for attracting larger institutional players to the market.


OKX, a cryptocurrency exchange, has chosen Standard Chartered as their third-party custodian for digital assets. This decision caters to the increasing need among institutional clients for secure, separate storage options for their crypto holdings.

In collaboration with the global banking powerhouse, Standard Chartered, OKX aims to strengthen its cryptocurrency safekeeping services tailored for institutional clients. This move seeks to meet the growing demand for secure, isolated storage solutions for digital assets.

On October 29, a blog post from the cryptocurrency exchange revealed their new partnership, stating that as cryptocurrencies grow in importance for varied investment portfolios, this collaboration is timely. OKX emphasized that their latest study indicates that around 80% of traditional and digital hedge funds using crypto assets rely on external custodians, thus emphasizing the significant demand for secure custody services offered separately.

As a crypto investor, I find it reassuring to know that institutions like Standard Chartered are extending their expertise into the rapidly growing crypto sector. By serving as OKX’s third-party custodian, they can offer me the confidence and security I need as an institutional investor, knowing my assets are being looked after by a reputable bank with a strong track record in traditional finance.

Our partnership forms a key aspect of our broader aim to connect conventional banking with the digital assets sector. It allows us to offer customers an option to manage their trading activities independently from safekeeping.

OKX

Through this partnership, Standard Chartered intends to encourage greater institutional involvement in the cryptocurrency market, fostering a more established and global institutional ecosystem. This move reflects the bank’s growing interest in the crypto sector as it mirrors an increase in market values.

Standard Chartered intensifies focus on crypto

At the beginning of August, Mox Bank – the virtual banking arm of Standard Chartered – was the pioneer in Hong Kong to make available spot crypto exchange-traded funds (ETFs) for individual investors. The bank’s selection of ETFs, which are compliant with Hong Kong regulations, includes various types of crypto ETFs, covering both immediate (spot) and future (derivative) products that are listed on exchanges in Hong Kong and the United States.

Moreover, Standard Chartered has been acknowledged by the Hong Kong Monetary Authority as part of their stablecoin testing environment, often referred to as a sandbox. This allows the bank to investigate the possibility of launching digital currencies that are backed by traditional money. In addition to Standard Chartered, other participants in this sandbox include JD.com’s subsidiary JINGDONG Coinlink Technology Hong Kong, RD InnoTech, and a collaboration between Animoca Brands and Hong Kong Telecommunications.

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2024-10-29 17:04