OKEx recently announced the launch of a cryptocurrency exchange creation program called the ‘Digital Asset Exchange Open Partnership Program’.
OKex is one of the largest exchanges in the world, claiming to handle over $1 billion worth of daily trades. It is the international counterpart to defunct Okcoin, which ceased operations last year because of a Chinese government ban on crypto-to-fiat trading. OKEx provides fiat-to-cryptocurrency, cryptocurrency-to-cryptocurrency, and derivatives trading services to global customers.
The new program, called Digital Asset Exchange Open Partnership Program, is part of the company’s global digital asset ecosystem expansion plan. “OK Partners” will be given access to the company’s advanced order matching system, counter system, cold and hot wallet technology, clearing system, multilingual customer support, as well as global know-your-customer (KYC) and anti-laundering measures. OKEx will also provide research and development (R&D) and system maintenance supports to all OK Partners.
Naturally, this kind of deal doesn’t come without a price. According to OKEx, people interested in joining this partnership program “are required to deposit 500,000 OKB in their accounts.” At this moment, OKB is trading for $5.06, which means that the initial investment sits at about $2,500,000. It’s probably for the best, though, as exchange operators need to make sure that they have some sort of liquidity to move around inside of OKEx’s system.
“Aspiring teams who aim to establish their own digital asset exchanges, only need to provide their domain names, logos, operation force, and to focus on the management and operations of the exchange,” the company said. “OKEx’s global technical team, on the other hand, will provide R&D and system maintenance supports to the teams, who will share the high liquidity and advanced trading experience offered by the world-leading digital asset exchange.”
OKEx’s partnership program is set to pick 100 potential partners from the pool of candidates for its first phase, which is slated to be operational by the end of July. It appears that the company came up with this idea as an alternative to launching a decentralized exchange, which it considers “an unfeasible idea with the current technology.”
When asked about the motivation behind the programme, a spokesperson for OKEx said :
“Throughout the years, OKEx has already devoted numerous resources in developing a truly decentralized digital asset exchange. Still, taking many factors like customers’ needs and actual operations efficiency into account, a decentralized digital asset exchange is still an unfeasible idea with the current technology. That said, we will never stop innovating. And this Digital Asset Exchange Open Partnership Program, which is based on the concept of decentralization, is our best proof. We believe the program will make a difference to the blockchain industry and inspire more exciting ideas to come.”