OKX Expands Partnership with Standard Chartered
In a significant move aimed at enhancing its service offerings in the European Economic Area (EEA), crypto exchange OKX is extending its partnership with Standard Chartered. This expansion comes after the successful rollout of their collateral mirroring programme, which was initially launched in the United Arab Emirates earlier this year.
Innovative Collateral Mirroring Programme
Under this innovative programme, institutional clients can utilize Standard Chartered as a custodian for their assets while simultaneously mirroring those balances on the OKX platform for trading on the blockchain. This arrangement merges traditional banking practices with the evolving world of cryptocurrency, thereby enabling clients to secure their digital assets with bank-like custody while gaining access to trading opportunities on the exchange.
The official statement from OKX emphasizes that this initiative not only widens their geographical presence but also contributes to the establishment of a safer and more dependable digital asset ecosystem in Europe.
Margaret Harwood-Jones, Standard Chartered’s Global Head of Financing and Securities Services, highlighted that this expansion leverages existing custody frameworks and regulatory compliance to better serve institutional clients in the region.
Alignment with EU Regulations
This move is in line with the European Union’s MiCA (Markets in Crypto-Assets) regulatory framework, which aims to create standardized regulations across member states for crypto asset service providers (CASPs) to protect consumer assets. The collateral mirroring system particularly aligns with MiCA’s objectives aimed at minimizing custody and counterparty risks, ensuring the security of digital assets held in a regulated banking context while remaining tradable on a licensed crypto platform.
Operational Challenges and Compliance
However, implementing this system requires a high level of operational precision, including maintaining a robust 1:1 mirroring process with real-time collateral adjustments. Any discrepancies could expose clients to risks such as under-collateralization or disputes, prompting regulators to expect strong operational frameworks and thorough audit trails from the service providers.
Regulatory Landscape and Legal Hurdles
OKX’s full Markets in Crypto-Assets license, obtained from Maltese authorities on January 27, 2025, permits the exchange to operate within the regulatory landscape of 28 European states. Nonetheless, the exchange has faced legal hurdles, including a €1.1 million (approximately $1.2 million) penalty in April 2025 for non-compliance with Malta’s Anti-Money Laundering regulations and a fine of €2.25 million ($2.6 million) from the Dutch National Bank for unregistered crypto services provided between July 2023 and August 2024.
