Standard Chartered has partnered with cryptocurrency exchange OKX to introduce a collateral mirroring programme, enabling institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading activities. The initiative aims to enhance security and capital efficiency by employing a Globally Systemically Important Bank (G-SIB) as the custodian for client assets.
The pilot programme operates within the regulatory framework of the Dubai Virtual Asset Regulatory Authority (VARA), offering clients increased protection against counterparty risk—a significant concern in the digital asset markets. Standard Chartered serves as the independent, regulated custodian, ensuring the secure storage of collateral assets, while OKX, through its VARA-regulated entity, manages the collateral and facilitates transactions.
Franklin Templeton is set to be the first in a series of money market funds offered under the OKX-Standard Chartered programme. Additionally, the dedicated crypto and digital asset division of alternative asset manager Brevan Howard is among the initial participants to onboard onto the programme.
This collaboration underscores the growing integration of traditional financial institutions with digital asset platforms, aiming to provide institutional clients with trusted environments to deploy trading capital at scale. By leveraging established custody infrastructures and regulatory compliance, the partnership seeks to foster greater trust in the evolving digital asset ecosystem.
