OKX draws new funding from Circle, Ripple, QRT and SC Ventures at $25 billion valuation

OKX brings in Circle, Ripple, QRT and SC Ventures as new investors

OKX, a crypto exchange where people buy and sell digital assets, has secured new investment from Circle, Ripple, Qube Research & Technologies (QRT) and SC Ventures, the venture arm of Standard Chartered.

OKX did not say how much the four investors put in. The deal values OKX at $25 billion on a pre-money basis, which means the valuation before the new money is added. That is the same valuation used in a March investment from Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, and the company says the new funding is an extension of that earlier deal.

OKX founder and CEO Star Xu said the exchange is changing what kind of company it is. “The exchange was our starting point, and we are evolving into a broader global financial technology platform,” he said. OKX says its aim is to let customers hold, spend, invest and grow their money from one platform.

Key details of the funding

• The new investors are Circle, Ripple, QRT and SC Ventures.
• OKX did not disclose the amount invested.
• The round values the company at $25 billion before the new money, matching the ICE deal from March.
• The company describes the latest funding as an extension of the ICE investment.

An NYSE-linked venture plans round-the-clock tokenized stock trading

The source of OKX’s push beyond crypto trading is its tie-up with ICE. A joint venture between the two companies filed with the U.S. Securities and Exchange Commission (SEC) this week to offer trading in tokenized U.S. stocks.

A tokenized stock is a blockchain-based version of a share. The venture, called OKXICE, plans to offer 24/7 trading in tokenized shares of 63 U.S. companies. It would use OKX’s X Layer blockchain and stablecoins — crypto tokens designed to hold a steady value — including USDC, USDT and USDG. The shares would keep their dividend and voting rights.

The filing is an early test of the SEC’s new five-year tokenization framework, which moves OKX into a business normally handled by brokerages and securities exchanges.

Analysts see hurdles for the tokenized stock venue

Investment banking firm Macquarie said in a report on Tuesday that adoption of the platform will depend on OKXICE attracting enough companies, investors and liquidity providers to keep prices reliable at all hours. It also said the temporary nature of the SEC exemption could make institutions hesitant to spend money connecting their systems before they know whether the rules will last.

TD Securities raised similar concerns in a note on Monday. Macquarie expects early use of the platform to lean toward retail investors rather than institutions.

What is confirmed

OKX has confirmed the four new investors and that the round values the company at $25 billion pre-money, with no amount disclosed. It also confirmed the funding extends its March investment from ICE. Separately, the OKX–ICE joint venture filed with the SEC for tokenized stock trading, and OKX has described its wider goal of becoming a broader financial technology platform.

What is still unclear

The size of the new investment has not been made public. It is also not yet known whether the tokenized stock venue will draw institutions, because that depends on how long the SEC framework lasts and whether enough companies, investors and trading firms take part. The views from Macquarie and TD Securities are analyst opinions, not confirmed outcomes.

Why this matters for the crypto industry

The move reflects a wider shift among crypto exchanges. Firms that built their businesses around trading digital assets are increasingly trying to become one-stop financial platforms, expanding into payments, stablecoins, stocks, derivatives and tokenized real-world assets. OKX’s deal with ICE shows that expansion reaching traditional stock markets, a business long dominated by brokerages and securities exchanges.

Sources

• CoinDesk