Cryptocurrency exchange OKX has introduced a new feature called OKX Pay, designed to streamline digital asset payments and enhance self-custody solutions. This innovation aims to make managing and using cryptocurrencies more intuitive for everyday users.
The service is being rolled out gradually, starting with select markets before expanding worldwide in the coming months. It addresses common challenges such as private key management and the risk of asset loss due to forgotten credentials.
How OKX Pay Enhances Self-Custody
One of the standout features of OKX Pay is its novel approach to private key management. Users store half of their private key in a passkey wallet, while OKX securely holds the other half. This split-custody model allows for easier account recovery without sacrificing security.
Funds cannot be moved without the user’s explicit permission, ensuring full control remains in the hands of the customer. This system combines the benefits of self-custody with the convenience of assisted recovery.
Supported Assets and Transaction Benefits
OKX Pay initially supports major stablecoins like USDT and USDC, enabling users to send and receive funds as easily as sending a text message. Transactions are fee-free and settle almost instantly, though they remain subject to standard compliance and risk controls.
The platform plans to add more stablecoins over time, broadening its utility and appeal. This flexibility makes it suitable for a wide range of payment scenarios.
Silent Rewards: Automated Yield Generation
A feature called "silent rewards" allows users to earn yield on their deposits automatically. The app identifies idle funds and stakes them into low-risk on-chain protocols without requiring manual input.
Deposits remain fully unlocked and can be withdrawn at any time, providing both earning potential and liquidity.
Security and Compliance Framework
OKX Pay incorporates robust security measures, including know-your-customer (KYC) verification, anti-money laundering (AML) controls, and multisignature security protections. These features ensure that the platform remains secure and compliant with global regulations.
The service is built on OKX’s X Layer, a zero-knowledge-based Layer 2 blockchain developed using Polygon’s CDK technology. This infrastructure helps maintain zero transaction costs while ensuring scalability and efficiency.
Future Developments and Integration Plans
Looking ahead, OKX plans to integrate traditional payment service providers like Mastercard and Stripe. This will expand OKX Pay’s usability at merchant point-of-sale systems, bridging the gap between crypto and conventional finance.
The company also envisions OKX Pay and X Layer serving as a foundation for financial institutions to offer compliant self-custody services in the future.
According to OKX CEO Star Xu, the new service is part of a broader effort to support the mainstream adoption of crypto and Web 3.0 technologies. The goal is to make digital assets a seamless part of everyday financial activities.
👉 Explore seamless crypto payment solutions
Frequently Asked Questions
What is OKX Pay?
OKX Pay is a feature within the OKX app that simplifies cryptocurrency payments and self-custody. It allows users to send and receive stablecoins easily while maintaining control over their assets.
How does OKX Pay ensure security?
The platform uses a split-key model where users hold half their private key and OKX holds the other half. It also includes KYC, AML checks, and multisignature protections to safeguard funds.
Which cryptocurrencies are supported?
Initially, OKX Pay supports USDT and USDC. Support for additional stablecoins is planned for the future.
Are there fees for using OKX Pay?
No, transactions are currently free of charge and settle almost instantly.
Can I earn rewards with OKX Pay?
Yes, the "silent rewards" feature automatically stakes idle funds into low-risk protocols, allowing users to earn yield without manual intervention.
Is OKX Pay available worldwide?
Availability is currently limited to certain jurisdictions, with plans for global expansion in the coming months.