Standard Chartered Becomes OKX Exchange’s Crypto Service Custodian

OKX, one of the leading crypto exchanges and onchain technology companies, recently announced that it has selected a third-party crypto custodian for its global institutional business, as the regulations require it to do. The platform picked to team up with Standard Chartered.

OKX Teams Up With Standard Chartered

OKX decided to join up with Standard Chartered thanks to its cross-border financial services that are able to connect multiple different financial markets around the world. The agreement will improve OKX’s existing services for institutional clients, adding risk management resources, advanced trading tools, and secure custody options.

The exchange also plans to leverage Standard Chartered’s global banking experience and risk management practices, which will allow it to expand its custody offerings for institutional investors.

Commenting on the move, Standard Chartered’s Global Head of Financing & Securities Services, Margaret Harwood-Jones, stated that the financial firm is committed to offering custodial services that meet the highest standards of safety and compliance. With that being the case, she added that servicing OKX as a third-party custodian will allow the bank to extend its expertise into the evolving crypto sector and provide much-needed assurance for institutional investors.

Along the way, OKX also introduced a new trading platform for retail and institutional investors in the UAE. The platform launched shortly after the exchange received the Virtual Assets Regulatory Authority (VARA) license in the country.

Institutional Clients Want A Custodian To Be A Separate Entity

OKX’s partnership with Standard Chartered stands to increase institutional involvement with the crypto industry, which is, after all, one of the goals behind OKX’s choice. Furthermore, it aligns with findings in an OKX-commissioned report by Economist Impact, called “Digital Assets as the New Alternative for Institutional Investors: Market Dynamics, Opportunities and Challenges.”

According to the report, there is a growing appeal of digital assets for financial institutions. The research noted that around 80% of hedge funds that have engaged in digital assets over the years have used third-party custodians. This also suggests that there is a growing demand for separate trade execution and asset custody, which is yet another reason why a partnership such as this one stands to elevate exchanges that choose to team up with a separate entity.

Commenting on the matter, Lennix Lai, the Chief Commercial Officer at OKX Global, stated that Standard Chartered has extensive banking experience and unwavering commitment to security. This aligns with OKX’s own objective of providing exceptional crypto services, and on top of that, it reinforces institutional clients’ confidence in managing their digital assets.

And, while OKX is already an established and respected entity, a partnership with a major traditional institution such as Standard Chartered adds another layer of validity that encourages institutional and wealthy investors to use its services when engaging in crypto trading.