Key Takeaways
- Standard Chartered actively adopts and uses DLT technology for its transfer agency system.
- The multinational bank is also a prominent venture capitalist for blockchain and crypto firms.
- OKX and Standard Chartered have increased institutional investment offerings in the UAE this year.
Cryptocurrency exchange OKX has announced that it will tap Standard Chartered as its crypto custodian to meet a growing demand for institutional-grade custody solutions.
OKX Crypto Custody
As per the Oct. 29 announcement from OKX, it has inked a partnership deal with banking behemoth Standard Chartered to be its third-party custodian for institutional clients.
The partnership is set to enhance OKX’s institutional services and products, granting them advanced trading tools, risk management resources, and secure custody offerings. Specifically, institutional clients will have the option of separating trading from custody
The exchange notes that “[…]the institutional crypto market is evolving rapidly, and we’re seeing that digital assets are no longer just a speculative play.” Highlighting a prior research paper, OKX writes:
“[…]80% of traditional and crypto hedge funds using digital assets rely on third-party custodians. This emphasizes the growing demand for segregation between trade execution and asset custody.”
The move comes just a couple of weeks after OKX expanded into the United Arab Emirates (UAE) after acquiring a full operating license from the UAE’s Virtual Assets Regulatory Authority. OKX is now available for both retail and institutional investors in the UAE.
Standard Chartered
This isn’t a first for the multinational banking giant. In fact, Standard Chartered has become a notable player in crypto, especially in the realms of digital asset custody and venture capital funding for blockchain and crypto projects.
Most recently, Standard Chartered announced that it had been granted a license by the Dubai Financial Services Authority (DFSA) to offer crypto custody to clients in the UAE. Having begun with Bitcoin (BTC) and Ethereum (ETH), the British banking megafirm says it believes digital assets represent a “fundamental shift in the fabric of finance.”
Notably, its SC Ventures arm is rather bullish on blockchain and, in 2023, partnered with Japanese finance conglomerate SBI Holdings to establish a $100 million crypto investment vehicle, which is conveniently also in the UAE.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
