Standard Chartered Selected as Third-Party Crypto Custodian for Seychelles-Based OKX Exchange

Seychelles-based cryptocurrency exchange OKX has made a groundbreaking move by selecting Standard Chartered as its third-party crypto custodian for institutional clients. This partnership marks the first time a systemically important bank has directly provided crypto custody for a major exchange, signaling a significant step towards enhancing institutional engagement in digital assets.

Standard Chartered, known for its global banking expertise and commitment to security, recently unveiled its digital asset custody offering in the UAE. The bank also founded Zodia Custody, a standalone crypto custody firm in collaboration with Northern Trust, with investments from Japan’s SBI and Australia’s NAB.

OKX’s Global Chief Commercial Officer, Lennix Lai, expressed excitement about the partnership, stating that it will accelerate the integration of digital assets within the traditional financial ecosystem. The collaboration will allow institutional clients to separate trading from custody, providing advanced trading features and risk management tools.

Despite its positive strides, OKX has faced regulatory scrutiny in the past, particularly due to its choice of headquarters in the Seychelles and withdrawal from certain jurisdictions. However, the exchange has taken steps to comply with regulations, including establishing a base in Malta to adhere to Europe’s MiCAR requirements.

While OKX has faced challenges in the past, such as allegations of lax verification requirements and wash trading, the partnership with Standard Chartered signifies a new chapter for the exchange. With a focus on security and institutional services, OKX aims to provide exceptional crypto services and instill confidence in managing digital assets for its clients.