Standard Chartered and OKX have launched a new collateral mirroring programme, allowing institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading. The programme is developed in collaboration with Franklin Templeton and includes Brevan Howard Digital among the first institutions to join.
The initiative, introduced in London and Dubai, aims to enhance security and capital efficiency by utilising a Globally Systemically Important Bank (G-SIB) as the custodian for collateral. According to Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, the programme reflects an understanding of the necessary robust and secure custody solutions in the evolving digital asset landscape.
The pilot programme operates within the Dubai Virtual Asset Regulatory Authority’s (VARA) framework, addressing counterparty risk concerns. Standard Chartered, as a regulated custodian, provides secure storage of collateral assets, while OKX manages collateral and facilitates transactions.
As Hong Fang, President of OKX, noted, the collaboration seeks to integrate the digital assets ecosystem with traditional finance, using Standard Chartered's custodial capabilities and OKX’s trading expertise to set an industry standard for institutional clients.
Franklin Templeton, known for its work in tokenisation and real world assets, is contributing to the programme by offering access to on-chain assets developed by its Digital Assets Team. Roger Bayston, Head of Digital Assets at Franklin Templeton, highlighted the platform's capability to support the growing financial ecosystem by enabling assets to move and settle at blockchain speed, eliminating traditional infrastructure needs.
Brevan Howard Digital, part of the global investment manager Brevan Howard, is among the early adopters of the programme. Ryan Taylor, Group Head of Compliance at Brevan Howard, emphasized the programme's role in advancing the institutionalisation of the digital asset industry.
For more details or media inquiries, contact Wasim Benkhadra or Kate Matthews at Standard Chartered.