OKX Launches Service for Easier Crypto Payments and Self-Custody

Cryptocurrency exchange OKX has unveiled "OKX Pay," a new in-app feature designed to streamline cryptocurrency payments and enhance the accessibility of self-custody for its global user base.

OKX Pay aims to tackle long-standing challenges in crypto usability, particularly the complexities associated with managing private keys and the risk of asset loss. A key innovation is its approach to private key management, splitting it between the user's passkey wallet and OKX. This allows for easier account recovery using zero-knowledge (ZK) email recovery without compromising security, as funds cannot be moved without explicit user authorization.

Initially, OKX Pay will focus on stablecoins USDT and USDC, enabling users to send and receive these digital currencies as easily as sending a message, with zero transaction fees and near-instant settlement. The platform intends to integrate additional stablecoins in the future, OKX said in a blog post.

Another feature is "silent rewards," which allows users to earn yield on their stablecoin deposits through automated participation in low-risk on-chain protocols, eliminating the need for manual staking. Deposits remain accessible for withdrawal at any time.

OKX emphasized the compliance and security aspects of OKX Pay, incorporating KYC, AML, and multi-signature controls. The feature is built on OKX's X Layer, a ZK-based layer-2 blockchain, which contributes to the zero transaction cost.

OKX said it plans to integrate traditional payment service providers like Mastercard and Stripe to further expand the utility of OKX Pay for point-of-sale transactions. The company believes OKX Pay and X Layer could form the foundational infrastructure for other financial institutions to offer their own compliant self-custody services in the future.

OKX CEO Star Xu stated that OKX Pay is a crucial step towards making crypto a seamless part of everyday financial activities, aiming to onboard the next generation of crypto users by addressing key usability and security concerns.

"Financial institutions will eventually be able to develop and deploy decentralized applications (dApps) that give their own customers access to OKX Pay. As more people become comfortable transacting in crypto, demand for services will inevitably rise," Xu said.