Standard Chartered has announced the launch of a collateral mirroring programme in partnership with OKX, a cryptocurrency exchange.
The programme will enable institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading.
By using a Globally Systemically Important Bank (G-SIB) as the custodian for collateral, institutional clients will benefit from enhanced security and capital efficiency, the bank said.
Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, noted the importance of secure custody solutions within the growing digital assets market.
“Our collaboration with OKX to enable the use of cryptocurrencies and tokenised money market funds as collateral represents a significant step forward in providing institutional clients with the confidence and efficiency they need,” said Harwood-Jones.
“By leveraging our established custody infrastructure, we are ensuring the highest standards of security and regulatory compliance, fostering greater trust in the digital asset ecosystem.”
The collateral mirroring capability has initially been launched as a pilot within the Dubai Virtual Asset Regulatory Authority’s (VARA) regulatory framework.
According to Standard Chartered, counterparty risk is a significant concern in the digital asset market.
To mitigate this risk, the programme uses VARA’s regulatory protection, with OKX, through its VARA-regulated entity, managing collateral and facilitating transactions.
Franklin Templeton will be the first in a series of money market funds to be offered under the OKX-SCB programme
