An industry-wide debate over crypto institutional adoption and centralized custody threat will set off a surge of curiosity in self-custody, OKX’s President Hong Fang mentioned in a current interview with CoinDesk.
Whereas institutional adoption and the growing reputation of crypto ETFs are a web constructive for the {industry}, there could also be a shift in {industry} narrative to warning towards custody focus threat, Fang argued. She predicts that almost all native crypto customers will undertake self-custody this 12 months.
On OKX, belongings held in its self-custody wallets (nearly $50 billion) exceed belongings on its centralized trade ($30.8 billion).
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“The stress between adoption and focus threat will come below a highlight,” mentioned Fang, who can be a speaker at Consensus Hong Kong in February. “Towards this backdrop, I anticipate extra {industry} campaigns to coach why self-custody is necessary and how you can use it, and extra merchandise to make it simpler for the lots to make use of self-custody and alleviate the dangers accordingly.”
In response to Fang, OKX DEX quantity has elevated 20 instances. However she argues that DEXs and centralized exchanges are complementary.
“The crypto-native viewers will need to have the ability to use CEX for reliability and DEX for catching improvements,” she mentioned. “Such supply-demand dynamics will drive additional adoption of DEX to allow innovation whereas supporting the gradual maturity of the crypto regulatory framework.”
A bitcoin strategic reserve?
A nationwide bitcoin strategic reserve, a coverage touted by the brand new Trump administration, would serve to centralize the main cryptocurrency. However many in crypto doubt it would truly occur, if bettors on Polymarket are any information (as of Jan. 22, they had been placing the possibilities of Trump creating such a reserve within the first 100 days of his administration at simply 30 %.)
Fang agrees with this sentiment.
“I personally discover it exhausting to consider that main sovereign international locations just like the U.S. will formally undertake bitcoin strategic reserve on the federal degree at this stage, however it is vitally doable that smaller sovereign international locations or states might,” she mentioned.
However, this being crypto, something is feasible.
Very surprising occasions — like a scarcity of comply with by way of by the Trump administration on its crypto guarantees — might dampen the bull run shortly, she mentioned. However the greatest threat in accordance with Fang stays over-centralization.
For that threat there is a vaccine: self-custody. Which, in accordance with OKX, the market is shortly adopting.
