Standard Chartered and OKX Unveil Institutional-Grade Collateral Mirroring Programme
Standard Chartered and OKX, a leading cryptocurrency exchange and global on-chain technology company, have jointly launched a cutting-edge collateral mirroring programme. The initiative allows institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading, significantly improving both security and capital efficiency.
The programme leverages Standard Chartered’s role as a Globally Systemically Important Bank (G-SIB), serving as the regulated custodian for client collateral, while OKX facilitates transaction management. This setup enables institutional clients to safely engage in trading while keeping their assets securely held with a trusted third-party custodian.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, stated:
“We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape, and our collaboration with OKX to enable the use of cryptocurrencies and tokenised money market funds as collateral represents a significant step forward in providing institutional clients with the confidence and efficiency they need. By leveraging our established custody infrastructure, we are ensuring the highest standards of security and regulatory compliance, fostering greater trust in the digital asset ecosystem.”
Launched as a pilot within the regulatory framework of Dubai’s Virtual Asset Regulatory Authority (VARA), the solution addresses rising counterparty risk concerns in today’s digital asset market. Under the pilot, Standard Chartered operates as the independent custodian within the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority (DFSA), while OKX’s VARA-regulated entity manages the collateral operations and trading infrastructure.
Franklin Templeton will be the first in a series of tokenised money market fund providers integrated into the programme. Known for its leadership in the tokenisation of real-world assets (RWAs), Franklin Templeton will offer on-chain products through its Digital Assets Team.
Roger Bayston, Head of Digital Assets at Franklin Templeton, explained:
“Leveraging blockchain technology, our platform is built to support the dynamic and ever-evolving financial ecosystem. We take an authentic approach, from directly investing in blockchain assets to developing innovative solutions with our in-house team. By ensuring assets are minted on-chain, we enable true ownership, allowing them to move and settle at blockchain speed – eliminating the need for traditional infrastructure.”
Hong Fang, President of OKX, highlighted the significance of the partnership:
“As the digital assets ecosystem becomes more ingrained within traditional finance, we strive to both drive growth and safeguard client assets in the most capital efficient manner. By leveraging Standard Chartered’s position as a top custodian globally, as well as OKX’s market leadership in cryptocurrency trading, the partnership sets an industry standard for current and potential institutional clients to deploy trading capital at scale in a trusted environment.”
Among the first institutional adopters of the initiative is Brevan Howard Digital, the crypto-focused division of leading global alternative investment manager Brevan Howard.
Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital, commented: “This programme is the latest example of the continued innovation and institutionalisation of the industry. As a significant investor in the digital assets space, we are thrilled to partner with industry leaders to further grow and evolve the crypto ecosystem globally.”
