Cryptocurrency exchange OKX has selected Standard Chartered to become its third-party crypto custodian for its global institutional business.
The deal see’s Standard Chartered extensive global banking expertise in a variety of international markets be leveraged by OKX to offer a wider range of institutional crypto services to custodians and institutional investors.
OKX Global Chief Commercial Officer, Lennix Lai, stated: “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.”
The agreement between the two parties is a landmark moment for OKX as it will now be able to significantly enhance its visibility across the traditional finance sector.
Digital assets have slowly been adopted by traditional finance institutions, with many beginning to use and launch blockchain-based tokenisation solutions when it comes to the payment customer journey.
OKX commissioned research recently which looked into institutional investors’ views on digital assets as an institutional opportunity.
The report found that 80% of traditional and crypto hedge funds utilising digital assets employ third-party custodians, highlighting strong demand for segregation of duties related to trade execution and asset custody.
The agreement with OKX is another example of Standard Chartered’s commitment to fostering crypto and digital asset growth as one of the leading banks.
The bank’s investment arm – SC Ventures – has invested in various crypto-related firms such as One Trading, and partnered with crypto exchanges like Crypto.com to facilitate seamless crypto transactions.
Standard Chartered’s biggest commitment to crypto growth comes from the United Arab Emirates launching its digital asset custody service. Its CEO Bill Winters stated that the bank believes “digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance”.
Leveraging its standing as a reputable bank globally, Standard Chartered will once again look to fuel crypto and digital asset growth now with the backing of OKX, one of the top five largest crypto exchanges in the world in trade volume.
Margaret Harwood-Jones, Standard Chartered Global Head of Financing and Securities Services, added: “We are committed to offering custodial services that meet the highest standards of safety and compliance.
“Serving as OKX’s third-party custodian allows us to extend our expertise into the evolving cryptocurrency sector, providing institutional investors with the assurance they require.”
