OKEx Launches 'USDK' Stablecoin in Partnership with Prime Trust

OKLink, the Hong-Kong based global settlement subsidiary of cryptocurrency exchange OKEx, is launching its own Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term today, June 3rd.

The launch of the stablecoin, known as USDK, will happen in partnership with the launch of United States-based crypto custodian Prime Trust. Prime Trust is also one of the trust companies in charge of the escrow accounts that hold the collateral for TrueUSD, another stablecoin; the firm also enables fiat trading on Singapore-based crypto exchange Huobi.

The launch of the USDK business was confirmed yesterday when OKLink posted copies of the partnership agreement on Twitter.

Leap Holdings Group Limited (https://t.co/jHEQd9NuJL) officially announced today its subsidiary company OKLink Fintech Limited (OKLink) has signed an agreement with Prime Trust, LLC (Prime Trust) to launch the USDK business. pic.twitter.com/CZqjq8PDzA

— OKLink (@OKLink) June 2, 2019

The Partnership Has Been in the Works For Some Time Now

Star Xu, founder of OKEx and OKCoin exchange services providers, originally announced the partnership between the two companies and plans to launch the stablecoin at the end of March.

I'm very excited about the strategic partnership with @PrimeTrustCo. We will carry out an in-depth collaboration and offer diverse, secure and regulatory compliant services with Prime Trust. I look forward to leveraging our synergies. https://t.co/omrIt2SI5j

— Star Xu (@starokcoin) March 28, 2019

At press time, OKEx was the world’s second-largest cryptocurrency exchange by adjusted daily trading volumes, having processed the equivalent of $1.8 billion in trades over the last 24 hours.

Finance Magnates reported in March that OKEx is in the process of developing a decentralized exchange with its own Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, which will be known as OKChain. OKChain’s testnet will reportedly be launched later this month.

OKEx isn't the only exchange to be working on launching a decentralized arm--Binance is also in the process of developing its own decentralized exchange. However, news emerged yesterday that users in at least 29 countries will be barred from accessing the exchange.