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Standard Chartered Bank Partners with OKX to Pilot New Program
Major Institutions Join the Pilot
International banking giant Standard Chartered Bank has launched an innovative program in collaboration with cryptocurrency exchange OKX, allowing institutional investors to use digital assets and “tokenized money market funds” (MMF) as collateral for over-the-counter trading. This initiative is supported by custodial services from Standard Chartered Bank to enhance asset security and compliance levels.
The pilot project, named the “Collateral Mirror Program,” has officially commenced under the supervision of the Virtual Assets Regulatory Authority (VARA) in Dubai, with Standard Chartered Bank acting as a regulated custodian within the Dubai International Financial Centre (DIFC).
The program operates by allowing institutional investors to deposit their assets with trusted institutions like Standard Chartered Bank instead of directly transferring funds to exchanges. OKX confirms that these custodial assets can serve as trading collateral through a “mirror mechanism,” achieving the effect of “assets not transferring, but functions available.” This design enables institutions to engage in trading, lending, and other operations while maintaining security and control. Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered Bank, noted that this collaboration represents a significant breakthrough in institutional-level digital asset services.
“The use of cryptocurrency and tokenized funds as collateral is an important step. We aim to provide a secure and compliant operational environment through a mature custodial framework, allowing institutional clients to participate in the digital asset ecosystem with greater peace of mind.”
Major Institutions Join the Pilot
Notable asset management firm Franklin Templeton is one of the key partners in this initiative. Its digital asset team will provide OKX clients with native “on-chain” tokenized money market fund assets, becoming the first on-chain financial instruments available for collateral. Roger Bayston, Head of Digital Assets at Franklin Templeton, stated:
“We are not just investing in blockchain assets; we are also developing our own on-chain financial solutions. By issuing assets directly on the blockchain, users can truly own their assets and complete transfers and settlements at blockchain speed, no longer relying on traditional financial channels.”
On the other hand, the globally renowned hedge fund Brevan Howard’s digital asset division, Brevan Howard Digital, is also participating in the pilot, becoming one of the first institutions to experience this new mechanism. Ryan Taylor, Compliance Officer at Brevan Howard, remarked:
“This is another key advancement for the industry toward professionalization and institutionalization. We are honored to collaborate with industry leaders to drive the maturation of the global crypto market.”
