OKX taps Standard Chartered as crypto custodian for institutional clients

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

OKX is joining forces with banking giant Standard Chartered to develop crypto custody services for institutional customers and meet the growing need for separate storage of digital assets.

The partnership comes as cryptocurrencies become key components of diversified investment portfolios, the crypto exchange said in an Oct. 29 blog announcement. OKX said its latest research shows that 80% of traditional and crypto hedge funds using digital assets are tied to third-party custodians, underscoring the critical need for dedicated custody services.

Margaret Harwood-Jones, Standard Chartered’s head of global finance and securities services, said that by serving as OKX’s third-party custodian, the bank can “extend our expertise into the emerging cryptocurrency sector and provide institutional investors with the assurance they need.”

“The partnership is part of our larger vision to bridge the gap between traditional finance and the digital asset world by providing clients with the option to separate trading from custody.”

OKX

Standard Chartered aims to “increase institutional participation” in the crypto space and contribute to “a more mature environment for institutions globally”. The partnership comes as the bank intensifies its focus on the crypto sector in parallel with the increase in market prices.

Standard Chartered intensifies focus on crypto

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

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