OKCoin, one of China's leading digital asset trading platforms, announced a significant brand evolution by adopting the Chinese name "币行" (Bì Háng), which translates to "Currency Bank." This strategic move aligns with the company's expansion beyond cryptocurrency trading into international financial services through its blockchain-based remittance platform, OKLink.
Core Offerings: OKCoin and OKLink
OKCoin 币行 operates two primary services: a digital asset exchange and a cross-border payments network.
The OKCoin exchange supports Bitcoin and Litecoin trading and maintains separate platforms for Chinese and international users. OKCoin.cn, the domestic Chinese platform launched in October 2013, quickly grew into a major market player, reporting daily trading volumes exceeding RMB 100 million shortly after its debut. The international platform supports USD trading and derivative products.
According to official data, OKCoin has served over two million users. By the end of 2015, cumulative trading volumes had reached 1.4 billion Bitcoin and 5.3 billion Litecoin.
The company's revenue model includes withdrawal fees and leveraged trading charges. In a past interview, Vice President Duan Xinxing noted that these services generate annual profits ranging from tens to hundreds of millions of RMB.
The Technology Behind the Services: Blockchain
Blockchain serves as the foundational technology for Bitcoin and other digital assets. It is a decentralized, distributed ledger that records transactions across a peer-to-peer network. This technology offers transparency, security, and immutability, making it nearly impossible to alter recorded data.
While Bitcoin remains the most recognized application of blockchain, the technology's potential extends far beyond cryptocurrencies. As noted by Hou Benqi, former General Manager of ICBC's E-Banking Department, the discussion has evolved from "Blockchain 1.0," focused on digital currencies, to "Blockchain 2.0," which explores broader financial and operational applications.
OKLink: Revolutionizing Cross-Border Payments
Launched in April 2016, OKLink leverages blockchain to address inefficiencies in international remittances, such as high costs, slow processing times, and lack of transparency.
The platform utilizes a proprietary blockchain to issue OK Dollar, a digital asset pegged 1:1 to the US dollar. This approach bypasses the need for a central clearinghouse, a major bottleneck in traditional cross-border payments.
Here’s how the process works:
- A user deposits local currency into a trust account managed by OKLink's partners.
- OKLink converts the deposited amount into an equivalent value of OK Dollars.
- These digital assets are transferred to a partner payout company in the recipient's country.
- The local partner converts the OK Dollars into the destination currency and delivers the funds to the end recipient.
- OKLink handles the netting and settlement between partners on its blockchain.
This model significantly reduces transaction times and costs while enhancing transparency. The network currently serves dozens of countries across Asia, including Japan and South Korea. Its primary clients are small to medium-sized financial institutions, such as banks, remittance companies, and fintech payment platforms.
For those interested in the practical applications of this technology, you can explore more strategies for digital finance.
Frequently Asked Questions
What is OKCoin's new Chinese name?
OKCoin has adopted the Chinese name "币行" (Bì Háng). This name reflects its role as a platform for currency and asset trading, aligning with its expanded financial services.
How does OKLink improve cross-border payments?
OKLink uses blockchain technology to create a decentralized network for remittances. It eliminates intermediaries, reduces fees, accelerates transfer times, and provides a transparent, immutable record of each transaction.
What is the relationship between OK Dollar and the US dollar?
OK Dollar is a digital asset issued on OKLink's blockchain. Each OK Dollar is backed one-to-one by a real US dollar held in reserve, ensuring its stability and value.
Who can use OKLink's services?
OKLink primarily serves businesses in the financial sector, including banks, remittance companies, and payment platforms. It is not typically a direct-to-consumer product.
How does blockchain technology benefit financial transactions?
Blockchain offers decentralization, enhanced security, transparency, and efficiency. It reduces reliance on central authorities, minimizes the risk of fraud, and streamlines settlement processes.