In a significant move to enhance institutional trust in cryptocurrency trading, OKX and Standard Chartered have expanded their custody solution to the European Economic Area. This partnership is designed to provide a secure trading environment for institutions that engage in substantial crypto transactions, specifically those managing eight- or nine-figure trades.
The custody solution enables institutions to trade cryptocurrencies without needing to make direct deposits on an exchange, ensuring their assets are securely handled by Standard Chartered’s bank-grade custody service. This extension into Europe responds to an increasing demand among banks in the region to bolster their crypto offerings while instilling confidence among large investors.
Erald Ghoos, the CEO of OKX Europe, emphasized the importance of mitigating risks for high-value traders. He noted that institutions are understandably cautious about risk exposure, especially in the wake of the FTX collapse that shook confidence in the sector. The collaboration is structured to allow institutions to feel more at ease when making substantial deposits, knowing their assets are safeguarded by a reputable banking institution.
With collateral securely managed by Standard Chartered, OKX is able to provide the necessary liquidity, effectively mirroring crypto deposits on its platform. This arrangement is particularly appealing to users who are concerned about the potential risks associated with centralized exchanges, especially considering the frequency of hacks and insolvencies that have plagued the industry.
Ghoos acknowledged the skepticism within the industry following the FTX fallout, highlighting that risk management teams at institutional firms have become increasingly cautious. However, he expressed optimism that their new custody solution could alleviate many of those concerns, thereby helping to restore trust within the sector.
As the cryptocurrency landscape continues to evolve, partnerships like that of OKX and Standard Chartered may play a crucial role in bridging the gap between traditional finance and the burgeoning digital asset space, potentially paving the way for greater institutional adoption.
