OKX brings new custody trading sub-accounts aimed at mitigating systematic risks

OKX now provides its customers with new account management capabilities that assist lower counterparty risk.
OKX now provides its customers with new account management capabilities that assist lower counterparty risk.

Crypto spot and derivatives trading exchange OKX has recently announced that it now offers customers, specifically token foundations and high-net-worth investors, new custody trading sub-accounts that are easier to create, manage, and grant access to accounts.

Customers may now create, administer, and grant access to sub-accounts more easily on the platform, particularly token foundations and high-net-worth investors. OKX now provides its customers with new account management capabilities that assist lower counterparty risk.

No customer funds are ever used by OKX for trading or leverage. The company said that any such action without the customer’s permission is unethical. It added:

“At the same time, we feel it is important for entities to understand counterparty risk when entrusting their funds to money managers or a trading team.”

OKX aims to mitigate systemic risk

OKX mentioned the ongoing adverse conditions in the crypto market by noting things happening with Three Arrow Capital (3AC). The exchange said that it is urgent “to roll out these features and provide our customers and entities with more control over granting different levels of access within their account. “

The company fundamentally believes that it is important for “each account owner to be able to permission and have complete knowledge of any trading activity that occurs while using their funds.”

The exchange is working on minimizing systematic risk in the formation of the crypto market’s next stage of maturity. Third parties or trading teams cannot transfer funds directly with the new custody trading sub-accounts on OKX. Having third-party trading or advising team for treasury management is often necessary for project teams and high-net-worth investors. The announcement reads:

“Unfortunately, the Three Arrows Capital incident has highlighted what can happen when the trustless and transparent crypto industry acts on trust and opaqueness. We’re committed to helping users mitigate this kind of systematic risk.”

The company is trying to expand its presence in the crypto industry. As TheCoinRise reported in March this year, the incumbent Premier League Champions Manchester City had tapped OKX as the club’s official crypto exchange partner in a multi-year deal.