Standard Chartered and OKX, a leading cryptocurrency exchange and global onchain technology company, have launched an innovative collateral mirroring programme. This initiative allows institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading, enhancing both security and capital efficiency.
👉 Discover how this programme transforms institutional trading
Key Features of the Programme
G-SIB Custodianship:
- Assets are held by Standard Chartered, a Globally Systemically Important Bank (G-SIB), ensuring top-tier security and regulatory compliance.
Counterparty Risk Mitigation:
- Clients benefit from reduced exposure to counterparty risk, a critical concern in digital asset markets.
Pilot Launch in Dubai:
- Operates under the Dubai Virtual Asset Regulatory Authority (VARA) framework, with Standard Chartered serving as the regulated custodian in the DIFC.
Industry Perspectives
Margaret Harwood-Jones, Standard Chartered:
"Our collaboration with OKX represents a major step in providing institutional clients with secure, efficient digital asset solutions. Leveraging our custody infrastructure ensures compliance and trust."Hong Fang, OKX:
"This partnership combines Standard Chartered’s custodial excellence with OKX’s crypto leadership, setting a new industry standard for institutional capital deployment."
Franklin Templeton’s Role
As the first tokenised money market fund provider in the programme, Franklin Templeton bridges traditional finance with blockchain innovation:
- Clients gain access to on-chain assets minted by Franklin Templeton’s Digital Assets Team.
- Blockchain-native solutions enable instant settlement and true asset ownership.
Roger Bayston, Franklin Templeton:
"Our platform eliminates reliance on legacy infrastructure, allowing assets to move at blockchain speed."
Brevan Howard Digital Among Early Adopters
Brevan Howard Digital, a top-tier crypto investment arm, highlights the programme’s significance:
Ryan Taylor, Brevan Howard:
"This partnership underscores the institutional maturation of crypto. We’re excited to collaborate with industry leaders to advance the ecosystem."
👉 Explore institutional-grade crypto solutions
FAQs
Q: What assets can be used as collateral?
A: Cryptocurrencies and tokenised money market funds (e.g., Franklin Templeton’s offerings).
Q: How does this programme reduce risk?
A: By employing a G-SIB custodian (Standard Chartered) and operating under regulated frameworks like VARA.
Q: Is this available globally?
A: Initially piloted in Dubai, with plans for expansion based on regulatory approvals.
Q: Which institutions are participating?
A: Brevan Howard Digital is among the first, with more expected to join.
Conclusion
This collateral mirroring programme merges the strengths of traditional banking and crypto innovation, offering institutions a secure, capital-efficient pathway into digital assets.