Blockchain

OKX Adds Standard Chartered as Third-Party Crypto Custodian for Institutional Investors

Crypto exchange OKX has announced a partnership with Standard Chartered, appointing the banking giant as a third-party crypto custodian for its institutional services. The partnership is set to enhance OKX’s offerings, which already include advanced trading capabilities, robust risk management tools, and enhanced custody solutions tailored for institutional investors, the platform said in a Tuesday announcement.

OKX said the addition of Standard Chartered is expected to boost the security and reliability of its custody solutions. The exchange said it aims to attract more institutional investors seeking secure asset management options by leveraging Standard Chartered’s extensive banking expertise and rigorous risk management framework.

“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,” Lennix Lai, Global Chief Commercial Officer at OKX, said. “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.”

According to a recent research commissioned by OKX, 80% of traditional and crypto hedge funds employ third-party custodians to manage their digital assets. The partnership comes at a time when Standard Chartered has launched its crypto custody services in the United Arab Emirates (UAE), a market characterized by a balanced approach to digital asset regulation.

The Dubai Financial Services Authority (DFSA) has granted Standard Chartered a license to operate within the Dubai International Financial Centre (DIFC), where the bank has already onboarded Brevan Howard Digital as its first client. The new custodial service, which currently supports Bitcoin and Ethereum, is part of Standard Chartered’s broader strategy to expand its digital asset offerings, including plans to add more cryptocurrencies and explore opportunities in other major financial hubs.

As reported, OKX has selected Malta as its hub for Markets in Crypto-Assets (MiCA) compliance within the European Union. At the time, the firm said it chose Malta due to its reputation for high regulatory standards and its progressive approach to blockchain technology and cryptocurrencies. Additionally, OKX already has existing personnel and infrastructure based in the Mediterranean island, making it a practical choice for establishing its MiCA hub.

More recently, OKX secured a Major Payment Institution (MPI) license in Singapore, which allows the exchange to provide a range of financial services.

The license allows it to process payments beyond the 3 million Singaporean dollars (approximately $2.2 million) cap for a single service and the 6 million SG$ ($4.4 million) limit for multiple services.

Furthermore, OKX officially launched its operations in Australia in May, enabling spot trading for all Aussie users and derivatives trading for verified wholesale clients in Australia. In June, the platform also debuted a crypto trading platform along with a Web3 wallet in the Netherlands. However, the crypto exchange has withdrawn its Virtual Asset Service Provider (VASP) license application in Hong Kong, ceasing its services.

Terron Gold