OKX taps Standard Chartered as crypto custodian for institutional clients

Crypto exchange OKX has selected Standard Chartered as its third-party crypto custodian, allowing institutional clients to meet growing demands for segregated custody solutions.

OKX is joining forces with banking giant Standard Chartered to enhance its crypto custody services for institutional clients, addressing the rising need for segregated storage of digital assets.

In a blog announcement on Oct. 29, the crypto exchange noted that the partnership comes as cryptocurrencies become essential components of diversified investment portfolios. OKX highlighted that its recent research shows 80% of traditional and crypto hedge funds utilizing digital assets depend on third-party custodians, underscoring the critical need for segregated custody services.

Margaret Harwood-Jones, global head of financing & securities services at Standard Chartered, commented that by serving as OKX’s third-party custodian, the bank can “extend our expertise into the evolving cryptocurrency sector, providing institutional investors with the assurance they require.”

“The partnership is part of our larger vision of bridging the gap between traditional finance and the digital asset world by giving clients a choice to separate trading from custody.”

OKX

Standard Chartered aims for this collaboration to “attract increased institutional participation” in the crypto space, contributing to a “more mature environment for institutions globally.” The partnership comes as the bank intensifies its focus on the crypto sector, aligning with a rise in market prices.

Standard Chartered intensifies focus on crypto

In early August, Standard Chartered’s virtual bank, Mox Bank, became the first in Hong Kong to offer spot crypto exchange-traded funds for retail investors. The bank’s offerings include a range of crypto ETFs approved under Hong Kong regulations, encompassing both spot and derivative products listed on exchanges in Hong Kong and the U.S.

Furthermore, the Hong Kong Monetary Authority also recognized Standard Chartered as a participant in its stablecoin sandbox, allowing the bank to explore the issuance of digital currencies backed by fiat. Alongside Standard Chartered, the HKMA’s sandbox includes several other entities, such as JD.com’s subsidiary JINGDONG Coinlink Technology Hong Kong, RD InnoTech, and a partnership involving Animoca Brands and Hong Kong Telecommunications.