OKX partners with Standard Chartered for institutional crypto custody

OKX has announced a strategic partnership with Standard Chartered, establishing the international bank as OKX’s third-party crypto custodian for institutional clients.

The announcement was made by OKX in a recent blog, which was curated by the exchange’s Chief Commercial Officer, Lennix Lai.

80% of crypto hedge funds use 3rd party custodians

The partnership comes at a crucial time for institutional crypto adoption. Research conducted by OKX in collaboration with Economist Impact reveals that 80% of hedge funds engaged in cryptocurrency rely on third-party custodial services.

These include both traditional and crypto-focused hedge funds. Standard Chartered’s involvement is particularly important as one of the first global systemically important banks (G-SIBs) to enter the crypto custody space.

The partnership aims to enhance OKX’s institutional offering by providing clients with the security and trust associated with traditional banking. At the same time, they intended to maintain access to crypto opportunities.

OKX believes crypto is the new alternative for institutional investors

“We believe that digital assets are the new alternative for institutional investors. As highlighted in our report, the dynamics of the market are shifting, and the opportunities are immense,” stated Lai.

Cryptocurrencies are increasingly viewed as a necessary component of diversified portfolios rather than merely speculative investments.

Ever since the approval of Bitcoin ETFs, there has been an increase in institutional investment in cryptocurrencies.

Lennix Lai emphasized that the partnership reflects OKX’s commitment to bridging the gap between traditional finance and digital assets.

The exchange’s institutional services already include advanced trading features and risk management tools. Now Standard Chartered’s custody services add another layer of security and legitimacy.

The move is part of OKX’s larger strategy to establish itself as the leading platform for institutional investors in the crypto space. By partnering with a reputable bank like Standard Chartered, OKX aims to set new standards for institutional crypto services.