Crypto exchange OKX on Tuesday said it will launch a new type of custody account to grant users more control over their funds and avoid risks.
The “sub-accounts” are aimed primarily at token foundations and high-value investors, and will offer holders a slew of more risk management features, including permission controls for withdrawals and a kill switch function.
The launch comes in the wake of the Three Arrows Capital (3AC) meltdown, during which the hedge fund allegedly used customer funds to meet its margin calls. OKX assured investors it would not resort to such practices.
Custody accounts are typically used by big project teams and investors with a huge net worth. This is because they normally involve third parties in advisory or trading boards responsible for their financial management.
Lesson from the 3AC Incident
OKX has stated in their announcement that these new managed sub accounts are introduced to tackle the issues that were highlighted after the losses incurred by Three Arrows Capital.
