Standard Chartered and OKX Launch Crypto Collateral Project
Key Takeaways:
- Institutional traders now have a secure avenue for managing crypto-based positions.
- Custody by a regulated bank enhances off-exchange asset security.
- A structured framework supports improved risk handling and liquidity.
On April 10, Standard Chartered and OKX announced the launch of a collateral mirroring programme that marks a step forward in integrating traditional finance with digital assets.
This initiative, developed in collaboration with Franklin Templeton, allows institutional clients to use cryptocurrencies and tokenized money market funds as collateral for trading activities.
Collateral refers to the digital assets—specifically cryptocurrencies and tokenized money market funds—that institutional clients use to secure their trading positions and financial obligations
Standard Chartered Launches Digital Collateral Programme Under VARA
The programme has been introduced within the regulatory framework of the Dubai Virtual Asset Regulatory Authority (VARA), looking to boost capital efficiency and mitigate counterparty risk.
According to the firm, by using the infrastructure of a Globally Systemically Important Bank (G-SIB) such as Standard Chartered, the programme allows clients to benefit from enhanced levels of security and regulatory compliance.
Standard Chartered acts as the regulated custodian through its presence in the Dubai International Financial Centre (DIFC), where it is overseen by the Dubai Financial Services Authority (DFSA).
This setup will mean that digital assets used as collateral are held securely off-exchange, reducing risks traditionally associated with on-exchange asset custody.
Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, stressed the importance of compliant custody solutions in the digital asset space.
She noted that the project with OKX is a commitment to advancing trust in institutional digital asset transactions. The bank’s custody infrastructure will play an important role in safeguarding assets.
Project Features Franklin Templeton’s Tokenized Funds
The programme also features Franklin Templeton’s tokenized money market funds, with its offering being the first to go live under the initiative.
As a key player in the tokenization of real-world assets, Franklin Templeton brings deep expertise in blockchain technology to the partnership.
Their Digital Assets Team is responsible for developing on-chain assets that institutional clients can now seamlessly integrate into their trading and treasury operations.
In February, Franklin Templeton announced that its Nasdaq-listed $594 million money market fund FOBXX will be offered on Solana.
FOBXX allows investors to gain exposure to U.S. government securities, cash, and repurchase agreements through a tokenized fund.
Hong Fang, president of OKX, stressed the strategic importance of the partnership in shaping the future of capital deployment in crypto markets.
By joining forces with a custodian like Standard Chartered, OKX said that institutional clients can trade at scale while maintaining safety and transparency.
The programme is part of OKX’s broader vision of embedding digital assets within the global financial system.
Among the early adopters of the programme is Brevan Howard Digital, the crypto-focused division of Brevan Howard, one of the world’s leading alternative investment managers.
Ryan Taylor, group head of compliance at Brevan Howard and CAO of Brevan Howard Digital, praised the programme as a step forward in the ongoing institutionalization of the crypto industry.
Crypto’s Regulatory Future Has Already Begun
The most telling part of this initiative isn’t the tech stack or the list of partners.
It’s that a global bank and a crypto exchange didn’t just cooperate—they built within a regulated system from the start. That changes the narrative.
For years, crypto existed in defiance of traditional oversight. Now, parts of it are being engineered to fit within that oversight by design.
This raises a more urgent question: what parts of crypto will survive once everything is expected to follow institutional rules?
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