Key Takeaways
- OKX and Standard Chartered have extended their custody solution to Europe.
- The platform lets institutions trade on OKX while a major bank secures their assets.
- Bank-grade custody brings a degree of trust that has been absent since the collapse of FTX, according to OKX’s Erald Ghoos.
As more European banks bolster their crypto offerings, Standard Chartered has extended its partnership with OKX to the European Economic Area.
The custody solution enables institutions to trade crypto without requiring direct deposits to an exchange, with all assets secured by Standard Chartered’s bank-grade custody service.
Bank-Level Security Minimizes Platform Risk
Initially launched in the UAE, the partnership between OKX and Standard Chartered is aimed at institutions that make eight- or nine-figure crypto trades, seeking to minimize risk.
Understandably, these big-time traders are “very concerned about risk exposure,” OKX’s EU CEO Erald Ghoos explained to CCN.
Institutions “feel more comfortable” making large deposits when their assets are held in custody at a major bank, he noted.
While collateral is safely tucked away with Standard Chartered, liquidity is provided by OKX, which mirrors crypto deposits on its platforms.
Building Institutional Trust
The ability to trade large amounts of crypto without having to entrust it to a centralized exchange appeals to users who are wary of platform risk.
Against the backdrop of so many hacks and insolvencies, institutional trust in crypto exchanges’ ability to safeguard deposits is in short supply.
“After FTX, the whole industry was reeling,” Ghoos observed. “Risk teams at institutional companies were more hesitant,” but the new product “mitigates a lot of those risks,” he surmised.
Top Trending Crypto Articles
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
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.
