OKX Partners with Standard Chartered: A New Era for Institutional Crypto Custody 🚀
The cryptocurrency exchange OKX has forged a partnership with banking powerhouse Standard Chartered, designating the latter as a third-party custodian for its institutional crypto services. This collaboration marks a significant step towards enhancing the platform’s offerings, which already features advanced trading capabilities, comprehensive risk management tools, and sophisticated custody solutions tailored for institutional investors.
Through this partnership, OKX aims to elevate the security and reliability of its custody solutions, ensuring that they meet the high standards required by institutional clients.
Expanding Institutional Appeal 📈
OKX is keen on drawing in more institutional investors who are in search of secure asset management solutions. By leveraging the extensive banking expertise of Standard Chartered and its strong risk management framework, OKX believes it can appeal to this crucial segment of the market. Lennix Lai, the Global Chief Commercial Officer at OKX, expressed confidence in the partnership, stating:
– “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.”
He further emphasized that Standard Chartered’s global expertise and commitment to security are aligned with OKX’s mission to provide superior crypto services. This partnership seeks to bolster the confidence that institutional clients have in managing their digital assets.
A recent study commissioned by OKX suggests a significant trend: approximately 80% of both traditional and crypto hedge funds utilize third-party custodians to manage their digital assets.
Standard Chartered Expands Custody Services 🌍
This partnership comes at a time when Standard Chartered has taken strides into the crypto space by initiating its custody services in the United Arab Emirates (UAE). The UAE presents a market that embraces a balanced regulatory framework for digital assets. The Dubai Financial Services Authority (DFSA) has granted Standard Chartered a license to operate within the Dubai International Financial Centre (DIFC), and the bank has already welcomed Brevan Howard Digital as its inaugural client.
Initially, the new custodial service supports Bitcoin and Ethereum, and it represents a part of Standard Chartered’s wider strategy. The bank plans to broaden its digital asset offerings by incorporating additional cryptocurrencies and exploring opportunities in other major financial hubs. This move signals Standard Chartered’s commitment to becoming a key player in the evolving landscape of digital assets.
OKX Chooses Malta for MiCA Compliance 🇲🇹
In another strategic development, OKX has announced its selection of Malta as its base for compliance with the Markets in Crypto-Assets (MiCA) framework within the European Union. Malta is well-regarded for its stringent regulatory standards and innovative approach to blockchain technology and cryptocurrencies, making it an ideal location for such an initiative.
OKX has existing personnel and infrastructure on the island, which further solidified its decision to establish this MiCA hub there. Recently, the exchange also obtained a Major Payment Institution (MPI) license in Singapore, extending its ability to provide a diverse range of financial services.
This new licensing allows OKX to process payments exceeding the cap of 3 million Singapore dollars (about $2.2 million) for individual services and the cumulative limit of 6 million Singapore dollars (around $4.4 million) for various services. Additionally, OKX launched its operations in Australia in May, providing spot trading for all users in Australia and derivatives trading for verified wholesale clients.
Moreover, the platform made its entrance into the Netherlands with the debut of a crypto trading platform and a Web3 wallet in June. However, it’s worth noting that OKX has decided to withdraw its application for a Virtual Asset Service Provider (VASP) license in Hong Kong, effectively ceasing its operations there.
Hot Take 🔥
In summary, OKX’s partnership with Standard Chartered signifies a significant move in the institutional crypto landscape. By enhancing the security and reliability of its services, OKX aims to engage a broader range of institutional clients while also expanding its global presence through strategic compliance and regulatory measures. This year may prove to be a transformative one for both OKX and the larger cryptocurrency market as they navigate a path toward deeper integration with traditional finance.
As the crypto world continues to evolve, it will be interesting to watch how these developments influence institutional engagement and the overall regulatory landscape.
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