Standard Chartered Bank and OKX, a leading cryptocurrency exchange, have jointly introduced a groundbreaking collateral mirroring programme, enabling institutional clients to use cryptocurrencies and tokenized money market funds as off-exchange collateral for trading. This initiative enhances security, capital efficiency, and trust in digital asset transactions.
Key Highlights of the Programme
- Strategic Partnership: Combines Standard Chartered’s custodial expertise with OKX’s crypto trading leadership.
- Regulatory Compliance: OKX’s VARA-regulated entity manages collateral, while Standard Chartered serves as the DFSA-regulated custodian.
- First-Mover Advantage: Franklin Templeton’s tokenized money market funds are the initial offering, with Brevan Howard Digital among early adopters.
Enhancing Institutional Confidence
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, emphasized:
"Our collaboration with OKX ensures institutional clients benefit from secure, compliant custody solutions, fostering trust in the evolving digital asset ecosystem."
Hong Fang, President of OKX, added:
"Leveraging Standard Chartered’s global custodial strength and OKX’s market expertise sets a new industry benchmark for scalable, secure trading."
How the Programme Works
- Custody: Standard Chartered safeguards collateral assets in Dubai’s DIFC.
- Collateral Management: OKX’s regulated entity facilitates transactions and mirrors collateral values.
- Asset Integration: Clients access Franklin Templeton’s on-chain assets for seamless financial operations.
👉 Explore how OKX is revolutionizing institutional crypto trading
Regulatory Framework
- Dubai Financial Services Authority (DFSA): Oversees Standard Chartered’s custodial operations.
- Virtual Asset Regulatory Authority (VARA): Regulates OKX’s collateral management.
Future Expansion
The programme plans to include additional tokenized money market funds, broadening institutional access to digital asset liquidity.
About the Partners
Standard Chartered
- Presence: 53 markets globally.
- Listing: London and Hong Kong stock exchanges (LSE: STAN, HKEX: 2888).
OKX
- User Base: 60+ million global users.
- Partnerships: Manchester City FC, McLaren F1, Tribeca Festival.
- Transparency: Monthly Proof of Reserves published.
FAQs
Q1: What assets can be used as collateral in this programme?
A1: Cryptocurrencies and tokenized money market funds (e.g., Franklin Templeton’s offerings).
Q2: How does the programme ensure security?
A2: Standard Chartered acts as a regulated custodian, while OKX adheres to VARA compliance.
Q3: Which institutions are already participating?
A3: Brevan Howard Digital is among the first adopters.
Q4: Will more funds be added to the programme?
A4: Yes, additional tokenized money market funds are planned.
Q5: How does this benefit institutional traders?
A5: It improves capital efficiency and reduces counterparty risk via off-exchange collateralization.
👉 Discover OKX’s institutional solutions
This initiative marks a pivotal convergence of traditional finance and blockchain innovation, setting standards for institutional crypto adoption.