Hong Fang of OKX Predicts 2025 as a Breakthrough Year for Self-Custody Solutions

In a recent discussion with CoinDesk, OKX President Hong Fang highlighted the impending surge in self-custody solutions due to the ongoing industry debate surrounding crypto institutional adoption and the risks associated with centralized custody. Fang emphasized that while the growth of institutional adoption and crypto ETFs is beneficial for the industry, there is a growing need to address the concentration risk of custody. She forecasts that a significant portion of native crypto users will opt for self-custody this year. Notably, OKX's self-custody wallets hold nearly $50 billion in assets, surpassing the $30.8 billion held on its centralized exchange. Fang noted that the tension between adoption and concentration risk will come under scrutiny, prompting more industry initiatives to educate users about the importance and proper use of self-custody. OKX has witnessed a 20-fold increase in DEX volume, with Fang arguing that decentralized and centralized exchanges serve complementary purposes. The crypto-native audience, she said, will utilize centralized exchanges for reliability and DEX for innovation. Regarding the concept of a national bitcoin strategic reserve, Fang expressed skepticism about its implementation at the federal level but acknowledged the possibility of smaller countries or states adopting such a policy. She emphasized that the biggest risk to the industry remains over-centralization, for which self-custody serves as a countermeasure.