Standard Chartered and OKX launch collateral mirroring programme

As the digital asset landscape evolves, the demand for secure custody solutions is growing. The collaboration between Standard Chartered and OKX facilitates the use of cryptocurrencies and tokenized money market funds as off-exchange collateral for trading, providing an optimal experience for institutional clients.

The programme aims to improve security and capital efficiency for these customers by using a Globally Systemically Important Bank (G-SIB) as the custodian for their assets’ collateral.

The collateral mirroring capability is being launched as a pilot programme within the regulatory framework of the Dubai Virtual Asset Regulatory Authority (VARA). This feature allows clients to benefit from protection against counterparty risk, a significant concern in the digital asset market.

In the Dubai International Financial Centre (DIFC), Standard Chartered acts as an independent and regulated custodian, regulated by the Dubai Financial Services Authority, providing the safe storage of the assets used as collateral. Meanwhile, OKX works through its VARA-regulated entity, managing collateral and facilitating transactions.

Franklin Templeton’s tokenized funds included in the programme

The programme involves institutions such as Franklin Templeton and Brevan Howard Digital, enabling the use of crypto and tokenized money market funds as collateral. Franklin Templeton is one of the first to offer a series of money market funds under the OKX-SCB programme.

Through this collaboration, OKX clients can access on-chain assets developed by Franklin Templeton’s Digital Assets Team, integrating them into their financial and operational structures.

Officials from the involved institutions stated that the partnership aims to set an industry standard for institutional clients to deploy trading capital at scale in a trusted environment and to integrate traditional finance with digital assets.

More about the Standard Chartered and OKX collaboration

The launch of the collateral mirroring programme marks a key aspect of the collaboration between the two institutions, which started in 2024 when OKX named Standard Chartered an institutional third-party custody partner for its institutional clients.

The partnership seeks to provide secure and scalable solutions for institutions while facilitating an optimised integration of digital assets into the traditional financial ecosystem.

Standard Chartered and OKX roll out collateral mirroring programme

Franklin Templeton’s tokenized funds included in the programme

More about the Standard Chartered and OKX collaboration