OKX Partners with Standard Chartered to Enhance Crypto Custody Services for Institutional Investors
OKX, a leading cryptocurrency exchange, has announced a strategic partnership with Standard Chartered, a global banking giant, to serve as a third-party custodian for its institutional services. This collaboration aims to strengthen OKX’s offerings by providing advanced trading capabilities, robust risk management tools, and enhanced custody solutions tailored specifically for institutional investors, according to a press release issued on Tuesday.
The addition of Standard Chartered is expected to significantly enhance the security and reliability of OKX’s custody solutions, attracting more institutional investors in search of secure asset management options. Leveraging Standard Chartered’s extensive banking expertise and rigorous risk management framework, OKX aims to integrate digital assets seamlessly within the traditional financial ecosystem.
Lennix Lai, Global Chief Commercial Officer at OKX, expressed confidence in the partnership, saying, “We selected Standard Chartered as an institutional custodian partner to enhance our offering and accelerate the integration of digital assets within the traditional financial ecosystem. Standard Chartered’s extensive global banking expertise and unwavering commitment to security aligns with our objective to provide exceptional crypto services and reinforces the confidence of our institutional clients in managing their digital assets.”
A recent research report commissioned by OKX revealed that 80% of traditional and crypto hedge funds rely on third-party custodians to manage their digital assets. The partnership with Standard Chartered comes at a time when the bank has launched its crypto custody services in the United Arab Emirates (UAE), a market known for its balanced approach to digital asset regulation. Standard Chartered has obtained a license from the Dubai Financial Services Authority (DFSA) to operate within the Dubai International Financial Centre (DIFC) and has already onboarded Brevan Howard Digital as its first client.
The new custodial service currently supports Bitcoin and Ethereum, but Standard Chartered plans to expand its digital asset offerings by adding more cryptocurrencies and exploring opportunities in other major financial hubs.
In addition to this partnership, OKX has chosen Malta as its hub for Markets in Crypto-Assets (MiCA) compliance within the European Union. The company cited Malta’s reputation for high regulatory standards and progressive approach to blockchain technology and cryptocurrencies as the reasons for this choice. OKX also holds a Major Payment Institution (MPI) license in Singapore, allowing it to provide a range of financial services. Furthermore, OKX has expanded its operations to Australia, enabling spot trading for all Australian users and derivatives trading for verified wholesale clients.
While OKX has made significant strides in expanding its global presence, the company recently withdrew its Virtual Asset Service Provider (VASP) license application in Hong Kong, leading to the cessation of its services in the region.