OKX and Standard Chartered Bring Collateral Mirroring to Europe

Institutions can secure their OKX trading collateral at a major bank. Credit:May James/SOPA Images/LightRocket via Getty Images.

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.

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