Standard Chartered and OKX, a leading cryptocurrency exchange and global on-chain technology company, have announced the launch of an innovative collateral mirroring program. This initiative enables institutional clients to use cryptocurrencies and tokenized money market funds as off-exchange collateral for trading. By leveraging Standard Chartered's custodial services, the program enhances security and capital efficiency for institutional participants.
Key Features of the Programme
- Enhanced Security: Utilizes a Globally Systemically Important Bank (G-SIB) as custodian.
- Capital Efficiency: Optimizes collateral usage for institutional trading.
- Regulatory Compliance: Operates under Dubai’s Virtual Asset Regulatory Authority (VARA) framework.
- Counterparty Risk Mitigation: Provides enhanced protection against digital asset market risks.
👉 Discover how this program transforms institutional crypto trading
Industry Perspectives
Standard Chartered’s Vision
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, emphasized:
"Our collaboration with OKX represents a significant step in providing institutional clients with secure and efficient digital asset solutions. By leveraging our custody infrastructure, we ensure the highest standards of security and compliance."
OKX’s Commitment
Hong Fang, President of OKX, stated:
"This partnership sets an industry standard for institutional clients to deploy trading capital at scale in a trusted environment, combining OKX’s market leadership with Standard Chartered’s custodial expertise."
Franklin Templeton’s Innovation
Franklin Templeton, a leader in tokenization and real-world assets (RWA), will offer money market funds under the OKX-SCB program. Roger Bayston, Head of Digital Assets, highlighted:
"Our blockchain-based platform enables true ownership and seamless integration of on-chain assets into financial structures."
Early Adopters
Brevan Howard Digital, a prominent crypto investment division, is among the first institutions to join the program. Ryan Taylor, Group Head of Compliance, noted:
"This initiative exemplifies the institutionalization of digital assets, and we’re excited to collaborate with industry leaders."
FAQs
What is collateral mirroring?
Collateral mirroring allows institutional clients to use digital assets (e.g., cryptocurrencies, tokenized funds) as collateral for trading, managed securely by a regulated custodian.
How does this program benefit institutional clients?
- Reduces counterparty risk.
- Improves capital efficiency.
- Ensures regulatory compliance.
👉 Learn more about institutional crypto solutions
Which regulatory framework governs this program?
The program operates under Dubai’s Virtual Asset Regulatory Authority (VARA) within the Dubai International Financial Centre (DIFC).
Who are the key partners?
- Standard Chartered: Custodian and G-SIB.
- OKX: Leading crypto exchange and program facilitator.
- Franklin Templeton: Provider of tokenized money market funds.
Conclusion
This groundbreaking collaboration between Standard Chartered and OKX sets a new benchmark for institutional crypto trading, combining security, efficiency, and regulatory rigor. By integrating blockchain technology and traditional finance, the program paves the way for broader institutional adoption of digital assets.