Aiming to Simplify Crypto Transactions and Mainstream Adoption of Stablecoin-based Payments, OKX Officially Launched OKX Pay

Crypto exchange OKX announced the launch of its own crypto payment application, called OKX Pay, aiming to simplify crypto transactions and mainstream adoption of stablecoin-based payments.

Available now in select markets with a full rollout planned, the initial version of OKX Pay allows users to send and receive stablecoins $USDT and $USDC with zero fees and near-instant settlement.

The application is embedded within OKX’s main platform, which is known for its spot and derivatives trading services.

Instead of managing a full private key, users store half of it in their passkey wallet while OKX holds the other half. This setup allows users to recover their wallets easily through account abstraction and zero-knowledge (ZK) email, similar to traditional banking, and keeps funds secure without needing to save seed phrases.

“The main feature of OKX Pay is its ability to be a self-custody solution where customers don’t need to manage a private key — a task that has traditionally been a barrier to crypto participation for many people.”

Star Wu, Chief Executive Officer, OKX

The application also features KYC, AML and multisignature protections. According to Wu, OKX cannot move any customer funds without explicit permission.

Transaction costs are zero as they run on OKX’s X Layer, a ZK-based layer two blockchain built with Polygon’s cloud development kit.

Moreover, users can send money to individuals or groups without limits, subject to compliance rules.

The app also offers a “silent rewards” feature, where users automatically earn rewards on their deposits through low-risk on-chain protocols. Funds stay flexible and can be withdrawn anytime.

About the OKX Card

Recently, Mastercard announced that it is partnering with OKX to launch the OKX Card, a new debit card that connects crypto trading and web3 spending to Mastercard’s global merchant network.

The move is part of Mastercard’s broader initiative to expand stablecoin payment capabilities, making transactions as seamless as traditional payments.

The card will allow users to spend crypto more easily, while merchants will be able to settle directly in stablecoins like $USDC and $USDP through collaborations with Circle, Nuvei, and Paxos.

We will work with partners like Mastercard to bring smooth stable coin payments to global customers.https://t..co/oqhZRpJCz1— OKX (@OKX) April 27, 2024

The integration aims to expand the adoption of cryptocurrencies and stablecoins among consumers and merchants.

The partnership is expected to launch later this year in select markets, combining Mastercard's expertise in payments with OKX's experience in cryptocurrency trading.

The move follows an existing partnership between Mastercard and Paxos, where they are piloting a US dollar-linked stablecoin to enable cross-border payments.

Mastercard's initiative to expand stablecoin payment capabilities is part of its broader strategy to stay ahead in the evolving payments landscape.

Earlier this year, Mastercard announced partnerships with seven crypto platforms, including Binance, Bitpay, and Animoca Brands, to streamline crypto integration for merchants on its network.

The partnerships aim to simplify the process for businesses to accept crypto payments and expand customer choice at the checkout.

Moreover, Mastercard is exploring ways to enhance the shopping experience with technologies like Web3 and tokenization.

Recently, Mastercard unveiled plans for a new tokenized loyalty program that allows customers to earn and redeem points across multiple merchants and brands.

The initiative is part of its broader effort to expand into new revenue streams and offer more value-added services to its partners.

Looking Forward

In the next phase, the aim is to integrate payment service providers, such as Mastercard, Stripe, and others, to enable users to easily make purchases through merchant point-of-sale systems using the app. Related partnerships will be announced soon.

According to Wu, in the future, all financial companies will offer some level of compliant self-custody, including payments and remittances.

With OKX Pay and X Layer, they are building the infrastructure foundation for that future, which will see a billion more people adopt crypto and Web3.

“Crypto adoption is already going mainstream – and OKX Pay will accelerate the journey.”

Recently, OKX announced that it is officially launching its crypto exchange and Web3 wallet in the United States, establishing a headquarters in San Jose, California. It offers phased access to trading services and fiat integration in the country.

This April, OKX and Standard Chartered also launched a collateral mirroring program in Dubai to allow institutional clients to use crypto and tokenized money market funds as off-exchange collateral.

The move follows Dubai’s new regulatory framework for crypto derivatives trading, which came into effect in March.

Moreover, OKX published its 29th consecutive proof-of-reserves report, verifying $24.6 billion in customer-backed assets with over 100% reserve ratios for top cryptocurrencies,