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Standard Chartered and OKX Partner to Enable Off-Exchange Crypto Collateral Use
In a landmark move, Standard Chartered has partnered with OKX to enable the use of cryptocurrency assets and tokenized money market funds as collateral for off-exchange transactions. This innovative initiative seeks to enhance capital efficiency and security in the crypto space.
Under this collaboration, institutions will be able to utilize a “collateral mirroring” mechanism, allowing them to employ digital assets and tokenized money market funds as collateral without having to remove them from Standard Chartered’s custody. The bank acts as the custodian under international regulatory oversight within the Dubai International Financial Centre (DIFC), while OKX manages the collateral and facilitates transactions through its Virtual Assets Regulatory Authority (VARA)-regulated entity.
Franklin Templeton is participating in this initiative by providing tokenized money market funds that are natively integrated into the blockchain. This approach ensures clear asset ownership, direct settlement at blockchain speed, and bypasses traditional financial infrastructure.
Brevan Howard Digital, a leading digital asset division, has also gained access to the program, emphasizing the importance of merging traditional banking infrastructure with the agility of the crypto ecosystem. Standard Chartered emphasized the need for custody solutions that are prepared to handle emerging risks.
Security remains paramount for institutions in this space, and the initiative aims to provide a reliable operational environment that meets regulatory requirements without compromising the flexibility of digital assets.
Source: https://crypto-economy.com/standard-chartered-and-okx-partner-to-enable-off-exchange-crypto-collateral-use/
