- Standard Chartered and OKX launch world-leading collateral mirroring program
- Standard Chartered acts as the regulated custodian in the Dubai International Financial Centre.
- Franklin Templeton and Brevan Howard Digital are among the first participants in the collateral program.
Standard Chartered and OKX launched a pilot program allowing institutional clients to use cryptos and tokenized money market funds as off-exchange collateral. The initiative was introduced on April 10 and is being tested under the Dubai Virtual Asset Regulatory Authority (VARA). At the same time, Standard Chartered is providing regulated custodial services in the Dubai International Financial Centre.
This pilot program introduces an off-exchange collateral mirroring capability. This is aimed at reducing counterparty risk and enhancing capital efficiency. Assets pledged as collateral will be stored securely with Standard Chartered, a Globally Systemically Important Bank (G-SIB), while OKX will handle collateral management and transaction facilitation under VARA’s oversight.
Franklin Templeton Onboards with Blockchain-Native Assets
OKX clients will gain access to tokenized money market funds developed by Franklin Templeton’s Digital Assets team. These funds are minted directly on-chain, enabling faster movement and settlement compared to traditional systems. Roger Bayston, Franklin Templeton’s head of digital assets, emphasized the importance of real-time blockchain settlement. He stated that true on-chain ownership eliminates reliance on legacy infrastructure.
Franklin Templeton is the first in what Standard Chartered and OKX expect to be a growing lineup of tokenized MMFs offered to institutional clients under this framework. These assets are integrated directly into institutional operations, facilitating new forms of digital asset management.
Institutional Adoption Expands with Brevan Howard Digital Participation
Crypto and digital asset division of global investment firm Brevan Howard, Brevan Howard Digital, is among the first institutions to onboard the collateral program. Ryan Taylor, head of compliance at the same firm, noted the pilot reflects continued innovation and institutionalization within the digital asset space.
Margaret Harwood-Jones, head of financing and securities services at Standard Chartered, also described the program as a strategic step. One of a kind that set toward building secure, regulated infrastructure to support digital assets in institutional finance. Standard Chartered enables safer collateralization of volatile digital assets. This is by leveraging its established custody systems in a way that aligns with compliance and security expectations.
The president of OKX, Hong Fang, also noted that combining the bank’s custodial role with trading capabilities of OKX provides institutions with a trusted environment to scale crypto trading. The pilot is set within the regulatory framework of Dubai. This underscores the city’s growing role as a global hub for digital asset regulation and innovation. Through collaboration with major players in asset management and crypto trading, the program is testing the viability of integrating tokenized assets into institutional financial operations under regulated conditions.
