OKX President Hong Fang Talks About the Future of BTC, Stablecoins, and Financial Infrastructure

Author: Payment201

In this episode of The New Money Podcast, we invite Hong Fang, the president of OKX, as our guest. OKX is one of the largest cryptocurrency exchanges in the world, serving over 60 million users. Hong reflects on her career path from Goldman Sachs to the crypto industry and explains how BTC and open, auditable infrastructure address the opacity, high reliance on credit, and growing inequality issues in the traditional financial system.

She elaborates on OKX's brand transformation and its strategic layout of "CeFi + DeFi integration," including the continuously expanding self-custody wallet, OKX Pay, and the launch of OKX Card focused on the Brazilian market, while also sharing the latest progress in advancing licensing compliance in several key jurisdictions.

The conversation also explores how OKX builds trust through on-chain Proof of Reserves, multi-layer risk control and governance mechanisms, and a "local + global" "team of teams" organizational model; and explains why it is crucial to maintain passion and a growth mindset as core hiring standards in the company culture. At the end of the interview, Hong emphasizes that entering the crypto industry requires humility and curiosity—this is an industry that must constantly challenge existing assumptions and continue learning.

Takeaways:

1. The fundamental value of BTC lies in "auditable honest infrastructure."
   Hong believes that BTC addresses the long-standing issues of opacity, excessive reliance on credit, and systemic risk in traditional finance through a decentralized, verifiable ledger.

2. The problems of traditional finance are not incidental but structural.
   From the 2008 crisis to the repeated pledging of private credit, the essence is "trust replacing facts" and "assumptions replacing verification," where a lack of transparency and auditability leads to risk contagion.

3. Intergenerational inequality and asset inflation are inherent results of a credit-based monetary system.
   Inflation, credit expansion, and rising asset prices combine to systematically exclude younger generations from the starting line.

4. Crypto does not "fix everything," but offers a more honest underlying option.
   Hong clearly states: crypto cannot eliminate human issues, but at least provides the possibility for a system with "better-aligned incentives and more transparent rules."

5. OKX's core strategy is the long-term integration of CeFi + DeFi.
   OKX does not see centralization and decentralization as opposites but views compliant CeFi as a bridge and self-custody DeFi as a counterbalance.

6. Self-custody is not a "product line," but part of a trust mechanism.
   Investing in wallets and self-custody infrastructure is to give users "choice," which itself is a constraint and balance against centralized platforms.

7. The significance of Proof of Reserves lies in "verifiability," not "everyone sees."
   Even if not all users will verify, the fact that "anyone can verify" constitutes part of governance and risk control.

8. Regulation is not a burden but another layer of systemic checks and balances.
   Licenses, on-site inspections, audits, and multiple defenses (business/risk control/audit) together form OKX's institutional response to "don't take it for granted."

9. Organizational model: global capabilities + local decision-making (Team of Teams).
   A global abstract framework with local flexible execution emphasizes a builder mindset rather than hierarchical control.

10. Hiring standards are highly consistent: passion + growth mindset + low ego.
    Hard skills are just a threshold; the ability to co-build long-term depends on the willingness to continuously learn, step out of comfort zones, and be honest with oneself.

11. Stablecoins are not the "opposite" of BTC but may be an accelerator.
    Hong believes that the payment and infrastructure maturity driven by stablecoins will ultimately promote broader adoption of BTC.

12. The only advice for newcomers: stay humble and don't rush to negate.
    What seems "crazy" in the market often just hasn't been understood; the most dangerous thing is to replace learning with bias.

Host:
We are very pleased to welcome a new episode of The New Money Podcast. Today, we have with us Hong—president of OKX. OKX is one of the top five cryptocurrency exchanges globally, with 60 million active users across multiple countries and regions, and is one of the first platforms to receive MiCA pre-approval in Europe, recently re-entering the U.S. market. I think there are many topics worth discussing today, and I look forward to this conversation. Thank you for joining the show.

Hong Fang:
Thank you for having me. Fena, is that how you pronounce your name? Or is it Fen?

Host:
Freddan, that's correct.

Hong Fang:
Right. I've been in the U.S. for quite a while recently, and Americans do find it hard to pronounce this name; they usually just call me Freddy. But this name is actually of German origin.

Host:
Yes.

Host:
I think we can discuss a few themes. First, I would love to understand your personal experience, then the development path of OKX, and how you view the evolution of the entire crypto market. Next, we want to talk about the future—where you think this market is headed and how you are shaping and driving that future. We will also spend some time discussing regulation, which is one of our "favorite" topics (laughs), and trust—how OKX builds products and systems around trust. So let's dive right in. I would love to hear about your experience. You spent about eight years at Goldman Sachs, right? How did you get to where you are today?

Hong Fang:
Yes, I feel quite lucky. I worked in the financial institutions group of Goldman Sachs' investment banking division for eight years. So shortly after the 2008 financial crisis, I had the opportunity to receive professional training on Wall Street. It was a great experience—good training, good learning opportunities. Later, I left Goldman Sachs and started doing growth equity investing. It was during that time that I met Star, the founder of OKX. At that time, his company was still called OKCoin, the largest crypto platform in China. I made an investment in OKCoin on behalf of my previous boss. It was through this investment that I really got to know Star, understood the business, and was formally introduced to BTC for the first time. For me, that was a very important turning point.

Because before that, I had many lingering questions from my work experience on Wall Street. I saw financial cycles repeating over and over again, witnessed systemic issues and structural pain points. These questions persisted until I truly understood BTC. I realized that this could be something completely different. It not only disrupted the financial training I received at Goldman Sachs but also fundamentally changed my understanding of the entire system—including the macroeconomic training I received in college and how people view "money."

That was the first time I truly realized: we don't necessarily have to rely on intermediaries forever. Many things can be built in a peer-to-peer manner. And this might be a better way to "put assets and value on-chain"—increasing transparency, exposing accountability mechanisms to everyone, allowing anyone to audit, and no one being able to tamper with the underlying infrastructure. Moreover, this infrastructure itself is "vital"—it embeds good incentive mechanisms that drive every participant in the system to act for the overall benefit. This was very shocking to me. So that’s how I entered the crypto industry. I also feel very fortunate to have had this opportunity. I have never regretted it; it is one of the best decisions I have ever made.

---

Host:
I would like to break this down further to give a broader audience some background.
During your years in traditional finance and participating in market operations, what specific observations led you to realize—"this system is actually broken, and there should be a better way"?

Hong Fang:
I think if you look at the way the financial system operates on the surface, you will find that financial crises occur cyclically. Each time, there is always a problem that arises somewhere in the market first. In 2008, it was mortgage-backed securities (MBS) that had issues, fundamentally due to layers of opacity and people's assumptions about the system. Everyone assumed that the things packaged into these assets had been vetted by someone else; they were "good risks" that could be safely distributed throughout the system. But that was not the case. Later, we discovered that a large amount of poor-quality credit had been injected into the system, far beyond people's understanding and recognition. So, in that case, transparency, accountability mechanisms, and "whether it can be independently verified" were core issues. And this kind of problem actually exists in many other contexts as well.

If you take a step back, you will find a lot of imbalances within the entire system—not just within the financial system but at the societal level. Society is being clearly divided into "owners" and "excluded." This division has even evolved into intergenerational divides. The baby boomer generation grew up in a relatively resource-abundant era, while the younger generation, just graduating or still in school, is already burdened with significant student loans. They have almost no initial resources, while the entire system has been flooded with newly printed money, and asset prices have long been out of reach. For them, this reality is very pressuring—they realize that it is nearly impossible for them to build their lives through hard work like the previous generation did. This inequality is actually "embedded" in the system.

Beyond the transparency issue, there is also the problem of excessive money supply and how various jurisdictions formulate and implement monetary policy. The entire modern financial system is fundamentally built on a "credit-driven" structure. There are many default assumptions in this system, such as:

• Inflation is a good thing.

• Credit is always a good thing.

When you layer these assumptions together, it creates a series of problems: asset prices keep rising because of inflation, and prices have almost no real room to adjust downward.
And those without resources can hardly "catch up." Even for people like you and me—who may not have family wealth but earn money through our own work—once we make money, we are forced to "make the money work." Otherwise, the hard-earned money will continue to depreciate over time. In other words, every ordinary person is forced to become a "manager" of their own assets. This itself is part of the system's design.

Coupled with the credit-driven economic model and the operational logic of the modern monetary system, it forms a very vicious cycle. Considering the fractional reserve system in the banking system, this imbalance is further amplified. Once a small corner of the system has a problem, in the absence of transparency and auditability, risks can spread rapidly, ultimately dragging down the entire system. Because that is how the entire system is designed.

I believe these issues are interconnected. I studied at business school in Chicago, which is known for macroeconomics and free market theory. I have always been a staunch supporter of free markets. But it wasn't until I truly understood BTC that I realized: if the underlying monetary system itself is not a free market, then the "free market" built on top of it is, in some sense, a facade. Because the price signals themselves are distorted by monetary policy. And once the entire system relies on these distorted signals to operate, it becomes like a "drug"—you cannot extricate yourself without a severe crisis or social upheaval. Ultimately, you can only restart after a collapse.

And BTC, at least at the level of underlying infrastructure, introduces a kind of "honesty." It does not solve all problems—because humans are still humans—but it at least provides the possibility of building a more honest and fair system. In this system, people may be able to receive rewards more reasonably based on their true contributions. Under the current system, I believe many incentive mechanisms are misaligned, making everything extraordinarily difficult.

Host:
The entire system seems to be severely "tilted" in one direction. Very interesting. I want to delve deeper.
If we talk about the earliest financial crisis, such as mortgage securitization and the systemic risks of 2008, that kind of "I trust you, you trust him" economic system—where everyone assumes that others have vetted the risks, placing "trust" before "facts." Similar things are still happening today. Recently, I saw a news report that in the private credit market, some assets were being pledged multiple times, but no one realized it until the problem erupted, revealing it to be a serious bad debt issue. I think teams like Figure are trying to build a market based on "facts rather than trust," which aligns very well with your earlier point.
Another point you mentioned is whether crypto, to some extent, provides a "rebalancing of opportunities" for young people in developed economies. Peter Thiel recently wrote an article arguing that capitalism is disappointing the younger generation, which closely aligns with your earlier view. Have you seen this trend in OKX's user demographics? For example, are younger people or those from relatively disadvantaged economic backgrounds using your products?

Hong Fang:
I think so. I believe the younger generation is more likely to truly embrace this new idea because it challenges many of the assumptions we have taken for granted throughout our lives. Moreover, everything is so new. From the data, we do see a considerable portion of retail users concentrated in their 20s, 30s, and 40s. Of course, we also have older users, but they often have a very open mindset and are willing to understand and embrace new things. In fact, many of them actively reach out to me. Overall, if you look at the macro distribution, your judgment is valid.

Host:
Now let's shift to your experience at OKX. You joined when the company was still called OKCoin. Can you take us through this brand transformation? Why did you decide to merge the two brands at that point in time?

Hong Fang:
I joined in 2019. At that time, I was mainly responsible for driving the growth of the regulated business of OKCoin globally.
This business primarily covers the U.S., Europe, Singapore, and parts of Asia, and we built it based on licenses, compliance, and risk control systems.

At the same time, we had another platform called OKEx, which was a pure crypto platform.
About four years ago, between 2020 and 2021, we made a strategic judgment: rather than maintaining two completely separate platforms, two sets of products, and two teams—one with fiat and licenses, the other without—it would be better to build a integrated platform. There are several reasons for this.
First, we were very clear that the trend of centralized platforms moving towards regulation was inevitable, and this was already very clear at that time.
So we chose to actively embrace regulation.

Second, we also saw market signals, especially feedback from retail users. Users wanted local teams and local support, and they recognized brands that were willing to invest long-term and seriously serve the local market.

Based on these judgments, we decided to merge the platforms and unify the brand as OKX. This brand transformation received very positive feedback overall. In addition, there are many practical advantages in terms of product synergy and brand synergy. We hope to build a unified compliance and risk control infrastructure on a larger scale.

Four years later, looking back, we are very satisfied with this strategic decision. We have continued to execute in this direction and have successfully launched and operated regulated products and businesses in multiple jurisdictions, including Europe, the U.S., the UAE, Singapore, Australia, and the Bahamas.

At the same time, we are also heavily investing in self-custody wallets and Web3 products. Because we believe that the combination of centralization and decentralization is the future. Centralized platforms are a very important "bridge," and we hope to establish a competitive advantage between the two, providing the best of both worlds to users. So far, we are very satisfied with the results we have delivered.

---

Host:
I completely agree; I think you have done very well on the branding front. I am a loyal fan of Formula 1 and also really like OKX's sponsorship of F1. Of course, this is also related to my love for the sport itself. Nico Rosberg is one of the early investors in Ivy, so we have always been at the intersection of crypto and F1. Returning to the competitive advantage issue you mentioned earlier, do you think that integrating these two systems of centralization and decentralization has already formed a unique selling proposition (USP) for OKX in the entire market? And will you continue to invest along the decentralized line?

Hong Fang:
I believe so. I think one of our unique aspects is that we truly bring the best parts of both worlds to users.

On the decentralized side, we offer a very powerful self-custody wallet equipped with an industry-leading DEX aggregator, compatible with many chains and ecosystems. We have a strong belief in interoperability and open ecosystems, and this belief runs through the design logic of our entire self-custody wallet and decentralized product system.

On the other side, we also have an extremely global and rapidly growing regulated centralized platform. We are one of the leading platforms in the UAE and continue to build and expand in markets such as Europe, Brazil, Turkey, Singapore, and Australia. In each jurisdiction, we have a very clear roadmap: apply for a license → obtain permission → establish compliance and risk control infrastructure → create highly localized, competitive products.

For example, we just launched the OKX Card in Brazil last week. This is a highly "localized" product for Brazil. Even though the OKX Card itself is built on OKX Pay—which essentially combines our centralized infrastructure (CeFi) with DeFi self-custody wallet technology to provide users with the convenience of centralization while retaining the self-control of DeFi—but in the specific design, we completely started from the Brazilian market: including compliance, risk management, and more importantly—how local users really want to use this card.

I believe we do have the advantage of "reserving" these capabilities in the system, able to combine the strengths of both worlds, continuously strengthening this entire product capability, and ultimately delivering it to users.

Host:
Very clear. If we summarize your career path simply: you started your career at Goldman Sachs, then invested in and deeply engaged with the early entity of OKX, later joined the company to lead the development of the regulated OKCoin platform, and now you are the president of the merged group. The role of "president" varies significantly across different companies. If you were to define it—what are the three things you are most focused on this year?

Hong Fang:
My priorities have always been changing. But the most important things probably include:

First, ensuring that our business execution is always aligned with the company's vision and Star's long-term vision; at the same time, building and aligning our talent philosophy and leadership pipeline around this vision to ensure we have the true capability to deliver and execute.

Second, one thing I have invested a lot of energy in over the past three to four years is combining the best practices of compliance, risk control, and governance from traditional finance with our internal innovation capabilities; and building these capabilities in a scalable manner.

Third, continuously empowering local teams. We want local teams to be the true decision-makers, able to drive a lot of frontline decisions. This means we need to establish a lot of "institutional muscle" at the organizational level. Of course, the vast majority of the actual work is done by our teams. I am very proud that we have built an increasingly strong team at both the global and local levels. Over the past four years, we have brought in many new leaders who have left a clear mark in their respective fields.

Host:
I would love to further elaborate on the "leadership pipeline" you just mentioned. When you are hiring and evaluating leaders for OKX, what do you value most? What factors are most important to you?

Hong Fang:
That's a great question. I will be honest: I have made many mistakes in hiring, and I am the first to admit that. The biggest lesson I have learned is that when you are looking for talent who can build long-term with the team, hard skills are important, but hard skills are just a threshold. What truly determines whether a person can succeed is their character and soft skills.

There are a few things that I consider non-negotiable.

First, whether they have enough passion is non-negotiable.
The passion I am talking about is not just for the crypto industry itself (though that is important), but whether they have passion for what they are doing. A person must have an intrinsic drive and genuinely care about what they are doing. Because we are all adults, we cannot rely on external forces to push or persuade others to do something; it must come from within. So, this drive, this level of concern, and the self-demand for excellence are absolutely non-negotiable for me.

The second non-negotiable factor is an open mindset.
This includes self-awareness and the ability to continuously iterate on one's own working methods, which is crucial in our rapidly evolving industry. There are so many things we still do not know in this industry. BTC and the entire crypto asset system span multiple disciplines. You must maintain an open mindset and learn from others.

This is also true at the organizational level. As the company grows every year, we as a team are constantly discovering new issues and new understandings about ourselves. Everyone will enter a comfort zone at some stage, and growth often means stepping out of that comfort zone. If a person does not have this open mindset, cannot push themselves out of their comfort zone, is unwilling to learn about things they are not good at or even do not know, and cannot honestly face these issues, it will be difficult for them to grow with us and help the organization grow. So for me, a growth mindset is the second most important and equally non-negotiable standard. This also means: does a person have a low ego? Can they be brutally honest with themselves? These two points are the core factors I value most when hiring leaders. Of course, there are other considerations, but these two are the most important.

Host:
If we combine your talent philosophy with your regulatory expansion and localization strategy, what is your organizational philosophy? Do you prefer to hire local CEOs in various markets to form relatively independent local units, or do you prefer to concentrate capabilities in the global organization as much as possible?

Hong Fang:
This is always a balancing issue. We are indeed continuously building a talent pool at the global level, especially for all centralized functions. And our talent standards are constantly improving. At the same time, we are very pleased to see that more and more excellent local talents actively want to join us. In almost all the jurisdictions where we operate, we have local CEOs: including the U.S., Europe, Dubai, Australia, Singapore, the Bahamas, Brazil, and Turkey. In these markets, local CEOs truly take on the role of "local heads" and have cross-functional local teams. At the same time, these local teams closely collaborate with the global team.

When I mention "balance," I often refer to a book I really like and have recommended multiple times within the company—Team of Teams. This book largely describes the stage we are currently in. We hope to have high-quality talent at both the global and local levels; at the same time, we want to build an organizational structure that enables everyone to have a "builder mindset." Our leaders, whether at the local or global level, will try to abstract specific execution into reusable frameworks, then productize these frameworks to form globally applicable capabilities. On top of these global frameworks, we then give local teams enough flexibility to operate, adjust, and execute on the front lines. This is basically how we currently operate organizationally.

Host:
Before we enter the final round of quick questions, I want to delve a bit deeper into the theme of "trust, compliance, and governance." You are one of the earliest and few platforms to continuously publish on-chain Proof of Reserves. If I remember correctly, you have conducted about 35 to 36 audits, which has become a very important part of the OKX brand and a strong endorsement of trust. Besides Proof of Reserves, what other key initiatives are you currently promoting in "building trust and making trust a competitive advantage"?

Hong Fang:
That's a very good question.
I have always believed that whether in traditional finance or in the crypto industry, trust should not be taken for granted. Trust needs to be continuously earned, and it must be verifiable. This is one of the fundamental beliefs and philosophies we hold as an organization.

Because of this, we heavily invest in self-custody technology, wallets, and underlying infrastructure. This is a key component of how we understand "trust," and it can even be said to be crucial. We believe that giving the community "choice" itself is a counterbalance to centralized platforms (including ourselves). At the centralized platform level, there are indeed several things that are crucial for establishing and maintaining trust. The importance of on-chain Proof of Reserves lies in the fact that it places transparency directly on-chain, allowing anyone to verify independently. Even if not everyone will actually verify, the fact that "anyone can easily verify" itself constitutes a control mechanism.

Additionally, obtaining licenses in key jurisdictions and actively accepting oversight from regulatory agencies is also a very important system of checks and balances. The existence of regulatory agencies helps us identify potential blind spots and ensures that we do not overlook key risks through regular reviews and on-site inspections.

Internally, we have also established multiple layers of defense:
The first line of defense is the business execution team; the second and third lines of defense are the audit, risk management, and compliance teams. These teams continuously check aspects such as system security, compliance infrastructure, and risk management.

The fundamental philosophy is: don't take it for granted. This is not because we are untrustworthy, but because people make mistakes in any system. What we need to do is build enough control mechanisms in the system to verify whether things are actually being executed as people say they are, rather than assuming "since it was said, it must have been done." Because you never know when problems will arise. And the more robust the control mechanisms, the safer the system becomes—this protects users and protects ourselves.

Host:
I have always liked to describe this point as: replace trust with facts, replace assumptions with truth.
Let's enter a brief quick-fire round. I will ask you two or three questions in succession, and you can answer quickly, okay?

Hong Fang:
Sure.

Host:
Regarding international expansion, which region are you most excited about "attacking" next?

Hong Fang:
Wow, that's a tough question right off the bat. If I had to say the next most exciting market, we have actually entered quite a few key markets over the past three years.

We started with Brazil, then entered Turkey, subsequently obtained the VAR license in the UAE and launched there; we also received a license from the Monetary Authority of Singapore (MAS) and launched in Singapore; earlier this year, we re-entered the U.S. market. Additionally, we made progress on Europe’s MiCA earlier this year. In all these markets, I believe we are still in a very early stage. We have achieved some initial results and have seen good growth momentum.

In certain markets, such as Brazil, Dubai, and Singapore, we rank quite high in user community feedback and user ratings, whether compared to global platforms or local platforms. We are very proud of this.

But even so, these markets are still just "the beginning" for us. We have a lot of work to do, including continuously optimizing product experience, improving user onboarding, and ensuring that products are competitive and differentiated enough.

For example, we launched OKX Pay in Singapore, and just recently launched OKX Card in Brazil. These product innovations are all part of our efforts to promote "beyond trading" use cases. We hope to showcase our long-term vision through these products: to truly bring more economic freedom to users, not just be a trading platform.

So if you ask me whether to enter a "new market," my answer is actually: we are currently more focused on doing well in these key markets we have already entered. In all these markets, we need at least five years to truly root ourselves locally, build connections, understand the community, and continuously deliver what they truly need.

Host:
What do you think is the most underestimated thing in the crypto industry right now?

Hong Fang:
I think many people are underestimating the role that BTC may play in the future. Right now, everyone's attention is more focused on stablecoins, payment applications, and institutional adoption. These trends are very important in themselves. The infrastructure driven by stablecoins, real-world assets (RWA), and institutional adoption is accelerating, which can help institutions reduce operational costs and improve efficiency, and allow digital dollars to reach a broader audience more quickly.

But at the same time, BTC has already gained a lot of institutional recognition. I truly believe that as stablecoins are adopted more widely, people will be surprised to find that this adoption will actually reverse drive larger-scale adoption of BTC. This shift may come very rapidly at some point. Of course, we will wait and see. I have always remained optimistic about BTC, and I believe the narrative around stablecoins will ultimately become a booster.

Host:
There is a contrary viewpoint that BTC represents the most original, decentralized, and ideologically "pure" vision; while stablecoins are its opposite, a form of centralized alternative.

Hong Fang:
Yes, but I believe that it is the infrastructure driven by stablecoins that matures and ultimately helps BTC.

Host:
Final question.
If you were to give one piece of advice to someone entering the crypto industry in 2025, what would it be?

Hong Fang:
You really know how to ask questions. I have been in this industry long enough to know very clearly what I can do and what I cannot do. To be honest, I don't think I am particularly good at "giving advice."

But if I had to share something I have learned, it would be: sometimes we feel that the market is crazy, and sometimes we think others are crazy. But what I have learned is that as individuals, there are actually many things we do not know or understand. And when we do not understand something, the most dangerous approach is to directly categorize it as "this is crazy," "this is a scam," "these people are foolish," or "they are just emotional." Everything that happens has its internal reasons; we just haven't understood them yet.

So I think a healthy humility is very important, especially for those who are new to this industry. If you do not understand a phenomenon, do not rush to negate it. Don't simply say, "this is too absurd." A better approach is to learn, challenge your existing assumptions, and try to understand why things are happening this way.

Host:
Thank you very much, Hong, for joining our show today. This conversation has been very enlightening, from your personal experiences to the present and future of OKX. I look forward to our next exchange.

Hong Fang:
Thank you for the invitation; I also really enjoyed this conversation.