OKX adds decentralized trading for US users as DEX volumes hit record high

Cryptocurrency exchange OKX, traditionally known for its centralized trading services, is expanding into decentralized finance (DeFi) with a new feature that lets US users trade tokens directly on decentralized markets. The DEX trading option, available through the OKX app, allows users to buy and sell tokens while retaining control of their digital assets. Trades are executed via self-custody wallets, meaning users hold their own private keys rather than storing funds on the exchange.

According to OKX, the feature provides access to millions of tokens across networks such as Solana, Base, and OKX’s own Ethereum layer-2 network called X Layer. The X Layer is built using Polygon’s Chain Development Kit (CDK). This development demonstrates OKX's efforts to become a more prominent player in the decentralized finance space as decentralized exchange activity surges.

The move comes amid a significant rise in decentralized exchange activity. DEX trading volumes hit an all-time high of $613 billion in October, accounting for about 20% of total crypto exchange volume, according to data from ForkLog. By integrating DEX access directly into its app, OKX aims to tackle long-standing barriers for traders navigating decentralized platforms, such as managing multiple wallets, bridging assets between blockchains, and covering gas fees.

The DEX launch follows OKX’s announcement of plans to re-enter the US market. This comes after the company reached a $505 million settlement with the Department of Justice earlier this year. The move underscores OKX's commitment to strategic growth in the cryptocurrency sector, particularly within the rapidly evolving decentralized finance ecosystem.

OKX is entering a decentralized exchange market already populated by established players such as Uniswap, PancakeSwap, and Hyperliquid. These platforms are considered cornerstones of the DeFi ecosystem. In September, DEX-based perpetual futures trading hit a record $70 billion, highlighting increasing onchain liquidity and trader interest in decentralized derivatives markets.

While DEXs can pose challenges in accessibility and usability, they are often favored by experienced traders. This preference is due to lower fees and adherence to the self-custody principles that underpin the cryptocurrency ecosystem. Despite the challenges, decentralized exchanges continue to experience rapid expansion across multiple sectors, particularly derivatives.