Core Insights - OKX has expanded its custody partnership with Standard Chartered into the European Economic Area (EEA), providing a banking-grade custody model for institutional traders in Europe [1][8] - The initiative aims to enhance investor protection by separating asset custody from trading, a practice that is standard in traditional finance but still developing in the crypto sector [3][5] Partnership Details - The partnership allows institutional clients to store their assets with Standard Chartered while mirroring those balances on OKX for trading, thus reducing counterparty and custodial risks [4][8] - This model addresses concerns raised by the 2022 collapse of FTX, which resulted in billions in frozen user assets, and aims to align digital assets with traditional financial safeguards [5][8] Regulatory Context - OKX's MiCA license provides the necessary regulatory clarity for institutions to invest in Europe with increased confidence [6] - The collaboration combines Standard Chartered's established custody infrastructure with OKX's regulatory framework, offering secure and compliant solutions for institutional investors in Europe [6][7] Industry Impact - The model seeks to bring the same level of transparency and safety expected by institutional clients in traditional markets to the crypto industry [7] - Other major exchanges like Deribit, Binance, and Bitget are pursuing similar partnerships to build trust following years of high-profile failures and regulatory scrutiny [7]
OKX Expands Standard Chartered Custody Partnership to Europe for Safer Institutional Trading