Standard Chartered launches a revolutionary collateral mirroring programme with OKX, enhancing crypto trading security for institutional clients.

In Short

A new programme, launched in partnership between OKX and Standard Chartered, allows institutional clients to use cryptocurrencies as collateral for trading, enhancing security and efficiency.

The pilot scheme, regulated by the Dubai Virtual Asset Regulatory Authority, ensures safe storage and management of assets while reducing counterparty risk.

The initiative, involving Brevan Howard Digital and Franklin Templeton, allows institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading.

The companies say the partnership  enhances security and capital efficiency by utilising a Globally Systemically Important Bank as the custodian for collateral.

Launched as a Pilot within the Dubai Virtual Asset Regulatory Authority’s framework, this service provides clients enhanced protection against counterparty risk, a major concern in digital asset markets.

Safe storage

Standard Chartered serves as the regulated custodian in the Dubai International Financial Centre, ensuring safe storage of collateral assets.

The VARA regulated entity will manage collateral and facilitate transactions. Franklin Templeton will be the first money market fund offered under the OKX-SCB programme.

By leveraging Standard Chartered’s esteemed custodial position alongside our leadership in cryptocurrency trading, the partnership establishes an industry standard for institutional clients to deploy trading capital securely.

Clients will gain access to on-chain assets developed by Franklin Templeton’s Digital Assets Team, integrating these seamlessly into their financial operations.