- Research reveals 80% of hedge funds utilizing digital assets prefer third-party custodians, highlighting market demand for such services.
- The partnership is set to integrate digital assets more seamlessly into the traditional financial ecosystem, facilitating institutional engagement.
OKX, a prominent onchain technology company, has announced its partnership with Standard Chartered to serve as its third-party crypto custodian for institutional clients. This collaboration highlights OKX’s commitment to providing secure, innovative solutions for the digital assets market.
Details of the Partnership
OKX has integrated Standard Chartered, a major international bank recognized for its cross-border financial services, to enhance its custody services for institutional investors interested in digital assets.
This aligns OKX with one of the first globally important banks to enter the crypto custody space, which could instill greater confidence among institutional investors.
The primary aim of this partnership is to bridge the gap between conventional financial services and the digital asset sector. This alignment allows OKX to offer its institutional clients the option to separate asset trading from custody, thereby enhancing security and compliance.
OKX’s suite of institutional services includes advanced trading features and risk management tools, and now, with the addition of Standard Chartered, it incorporates an improved custody solution that integrates seamlessly with the traditional financial system.
Institutional Adoption of Digital Assets
The partnership is poised to meet the growing demand among institutions that see digital assets as a viable component of a diversified investment portfolio. Research conducted by OKX in collaboration with Economist Impact reveals that 80% of hedge funds that use digital assets employ third-party custodians.
This demonstrates a significant reliance on specialized services that separate trading activities from asset management, enhancing security for institutional investments.
The involvement of Standard Chartered serves as a robust endorsement of OKX’s custodial services, setting a high standard in the cryptocurrency custody domain. This is crucial as institutional investors require not only performance but also a high degree of security and regulatory compliance.
Looking ahead, OKX is committed to expanding its range of services to support the growing institutional interest in cryptocurrencies. By working with established financial entities like Standard Chartered, OKX aims to lead the evolution in crypto asset services, ensuring that the platform remains attractive to institutional investors globally.
