Ethereum News Today: OKX's New DEX: Users Hold Keys as DeFi Volumes Surge

OKX, traditionally known for its centralized trading services, is expanding into decentralized finance with a new feature that lets US users trade tokens directly on decentralized markets according to Cointelegraph. 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.

The move comes as decentralized exchange activity surges, with DEX trading volumes hitting an all-time high of $613 billion in October, accounting for about 20% of total crypto exchange volume.

The expansion aligns with broader trends in the DeFi ecosystem, where decentralized exchanges continue to attract significant liquidity and user engagement. According to a report from DappRadar, blockchain gaming and DeFi accounted for 46.3% of all DApp activity in October, despite a 3% decline in total daily active wallets to 16 million. DEX-based perpetual futures trading alone reached a record $70 billion in September, underscoring growing demand for onchain derivatives markets. OKX's integration of DEX access aims to address usability challenges, such as bridging assets between blockchains and managing multiple wallets, by streamlining the trading experience within its app.

The regulatory landscape remains a key factor shaping DEX growth. In October, major Ethereum stakeholders launched the EPAA, uniting DeFi foundations like Aave and Uniswap to coordinate policy efforts and advocate for decentralized infrastructure in crypto regulation. Meanwhile, regulatory uncertainty, including proposed KYC rules for non-custodial wallets, has raised concerns about potential offshore migration of DeFi activity. Despite these challenges, DEXs remain popular among experienced traders for their lower fees and self-custody principles.

OKX's DEX launch follows its $505 million settlement with the US Department of Justice earlier this year, which allowed the exchange to re-enter the American market. The feature provides access to tokens on Solana, Base, and OKX's own Ethereum layer-2 network, X Layer. By offering self-custody wallets, OKX positions itself to compete with established DEX platforms like Uniswap and PancakeSwap, which collectively dominate a significant share of onchain trading volume.

The timing of OKX's move coincides with a broader surge in DeFi innovation, including the launch of Credora, a DeFi-focused risk ratings platform by RedStone, and the Ethereum-based EPAA alliance according to Cointelegraph. These developments highlight the sector's resilience amid market volatility and regulatory scrutiny, as platforms seek to enhance transparency and credit assessment tools to attract institutional and retail users alike.