OK Invests in U.S. Trust Firm Prime Trust to Launch Stablecoin

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In a strategic move underscoring its commitment to global expansion and regulatory compliance, OK Group has announced a significant investment in Prime Trust, a licensed U.S. trust institution. The partnership paves the way for the joint development and launch of OKUSD, a new dollar-pegged stablecoin built on the OKChain blockchain. This collaboration marks a pivotal moment in the evolution of regulated digital assets and reinforces the growing synergy between traditional financial infrastructure and blockchain innovation.

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Prime Trust: Bridging Traditional Finance and Blockchain

Prime Trust is a Nevada-chartered trust company regulated by the Department of Financial Institutions. As a licensed financial intermediary, it provides critical infrastructure for blockchain-based financial services, including digital asset custody, transaction processing, fund administration, anti-money laundering (AML) compliance, and Know Your Customer (KYC) frameworks.

The firm has already established itself as a trusted custodian in the crypto ecosystem. In October 2018, Prime Trust began offering custody services for assets on the Stellar network. It also serves as the custodian for IBM’s Stronghold USD and TrustToken’s TrueUSD (TUSD)—two prominent regulated stablecoins designed to ensure transparency and asset backing.

Why Custody Matters for Stablecoins

At its core, asset custody involves the secure holding of client funds or assets, along with oversight and administrative support. Investors and issuers maintain accounts with the custodian, which executes fund transfers based on verified instructions without participating directly in transactions.

This model is especially vital for stablecoins—digital tokens pegged to fiat currencies like the U.S. dollar. While many stablecoins claim to be fully backed by reserves, historical incidents have revealed transparency gaps. For example, in October 2018, Tether (USDT) faced a crisis when reports surfaced suggesting insufficient dollar reserves, causing its price to drop sharply from $1.00 to $0.93.

By integrating a licensed custodian like Prime Trust, stablecoin issuers can offer verifiable proof of reserves. All stakeholders gain visibility into the flow and status of underlying assets, significantly enhancing trust. Moreover, custodians can freeze funds immediately in case of fraud, regulatory concerns, or technical breaches—providing an essential layer of investor protection.

OK Group’s Strategic Expansion

The investment in Prime Trust follows OK Group’s earlier acquisition of a controlling stake in Forward Group Holdings (01499.HK) in January, signaling a broader strategy focused on international growth and regulatory alignment. As part of this vision, OK Group aims to deliver secure, compliant, and diversified financial services across global markets.

OK Group founder Star Xu expressed enthusiasm about the partnership:

“I’m very excited about our strategic collaboration with Prime Trust. We will work closely together to provide diversified, secure, and regulation-compliant services. Our combined strengths will drive meaningful innovation in the digital asset space.”

This move aligns with OK Group’s long-term roadmap, which includes the development of OKChain, a proprietary public blockchain unveiled in December 2024. Currently in its final development phase, OKEx plans to release the testnet in June 2025, setting the stage for native decentralized applications and token issuance—including OKUSD.

👉 Explore the future of blockchain-powered financial ecosystems and stablecoin innovation.

The Road to OKUSD

Speculation around OK Group’s stablecoin ambitions intensified on March 19, when Star Xu retweeted a post about IBM’s stablecoin initiative and hinted at an upcoming announcement. That same day, OKB—the native utility token of OKEx—surged by 20%, reflecting strong market confidence in the impending launch.

In a follow-up statement, OK Group confirmed:

“Stablecoins are one of the most important applications in blockchain technology. We are pleased to announce that we will soon launch our own stablecoin—OKUSD.”

Interestingly, Xu has previously voiced skepticism about USD-pegged stablecoins like USDT, questioning their reserve transparency and highlighting potential overreliance on U.S. monetary policy. At one point, he advocated for RMB-pegged alternatives to reduce dependency on the dollar system.

However, the decision to launch OKUSD as a U.S. dollar-backed stablecoin suggests a pragmatic shift—prioritizing global liquidity, market demand, and institutional acceptance over ideological preferences.

Competitive Landscape and Market Implications

OK Group is not alone in recognizing the strategic value of stablecoins. According to Cointelegraph, Huobi Global also plans to introduce its own stablecoin in 2025 as part of its annual development roadmap. This trend reflects a broader industry shift: major exchanges are moving beyond trading platforms to become full-stack financial ecosystems offering payments, lending, savings, and now, sovereign-backed digital currencies.

The emergence of exchange-backed stablecoins introduces both opportunities and challenges:

With Prime Trust’s regulatory credentials and OK Group’s technological infrastructure, OKUSD is positioned to meet high standards of compliance and security—key differentiators in an increasingly crowded market.

👉 Learn how next-generation stablecoins are redefining trust and transparency in digital finance.

Frequently Asked Questions (FAQ)

Q: What is OKUSD?
A: OKUSD is a U.S. dollar-pegged stablecoin being developed by OK Group in partnership with Prime Trust. It will be issued on the OKChain blockchain and fully backed by audited reserves held in custody.

Q: Is OKUSD already available?
A: As of now, OKUSD has not been officially launched. The token is expected to debut following the release of the OKChain testnet in June 2025.

Q: How does Prime Trust ensure the safety of reserves?
A: Prime Trust operates under Nevada state banking regulations and maintains segregated client accounts at insured financial institutions. Regular audits and real-time reporting enhance transparency and accountability.

Q: Why did OK Group choose a U.S. dollar-backed stablecoin instead of RMB-pegged?
A: Despite earlier advocacy for RMB-pegged models, the choice reflects market dynamics—USD-backed stablecoins dominate global crypto trading volumes and offer broader interoperability.

Q: Will OKUSD compete with USDT or USDC?
A: Yes, OKUSD will enter a competitive landscape dominated by Tether (USDT) and Circle’s USDC. However, its integration with OKEx’s ecosystem and Prime Trust’s custody may offer unique advantages in security and compliance.

Q: Can anyone use OKUSD?
A: Once launched, OKUSD will likely be available to users globally, subject to local regulations. Its primary use cases will include trading, remittances, decentralized finance (DeFi), and cross-border payments.

Conclusion

The strategic investment in Prime Trust represents more than just a financial transaction—it’s a bold step toward building a compliant, transparent, and scalable digital asset ecosystem. By combining cutting-edge blockchain technology with regulated financial services, OK Group is positioning itself at the forefront of the next wave of fintech innovation.

As stablecoins, blockchain infrastructure, and institutional-grade custody converge, projects like OKUSD are setting new benchmarks for trust and utility in the decentralized economy.

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