Source: OKX

Today, Standard Chartered Bank and the global leading cryptocurrency exchange and blockchain technology company OKX jointly announced the launch of a pioneering global collateral assets mirroring project. The project allows institutional clients to use digital assets and tokenized money market funds as off-balance-sheet trading collateral, with custody of the collateral assets managed by a globally systemically important bank (G-SIB), significantly enhancing the safety and capital efficiency of institutional client funds.

Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered Bank, said: "In the face of the constantly changing landscape of digital assets, we recognize the importance of a robust, secure custody solution. This collaboration with OKX, supporting users to use digital assets and tokenized money market funds as collateral assets, marks a significant step forward in boosting confidence and efficiency for our institutional clients. Leveraging Standard Chartered Bank's mature custody infrastructure, we will ensure the highest standards of security and compliance, thereby strengthening market trust in the digital asset ecosystem."

The collateral mirroring project has been launched under the regulatory framework of the Dubai Virtual Asset Regulatory Authority (VARA). The project can significantly reduce the counterparty risk, a key pain point in the current digital asset market, providing users with more effective protection. As an independent custodian within the Dubai International Financial Centre (DIFC), Standard Chartered Bank is regulated by the Dubai Financial Services Authority (DFSA) and is responsible for securely storing the collateral assets. OKX, through its VARA-licensed entity, manages the collateral assets and executes transactions. Franklin Templeton will be one of the first money market funds to be launched in this joint project between OKX and Standard Chartered Bank.

Hong Fang, CEO of OKX, said: "As the digital asset ecosystem gradually integrates with the traditional financial system, we are committed to driving industry growth with the highest capital efficiency while safeguarding user asset security. This collaboration combines the strengths of Standard Chartered Bank as a top global custodian and OKX's market-leading position in the cryptocurrency trading field, setting an industry benchmark for existing and potential institutional clients and creating a trusted environment for their large-scale deployment of trading capital."

Franklin Templeton is a recognized leader in the tokenization and real-world assets (RWA) space, constantly innovating with blockchain technology to provide cutting-edge solutions for its users and clients. Through this collaboration, OKX users will be able to directly use blockchain assets developed by the Franklin Digital Assets team and seamlessly integrate them into their own financial and operational systems.

Roger Baysto, Head of Digital Assets at Franklin Templeton, said: "Our platform is built on blockchain technology with the aim of supporting the ongoing dynamic development of the financial ecosystem. Whether it's direct investment in blockchain assets or innovative solution development by the in-house team, we adhere to on-chain operations—on-chain asset minting helps achieve true ownership, ensuring asset transfers and settlements occur at blockchain-level speeds, completely freeing ourselves from the constraints of traditional infrastructure."

The global top-tier alternative investment management firm Brevan Howard's subsidiary focused on digital currencies and digital assets, Brevan Howard Digital, is one of the first institutions to join this innovative project, highlighting the importance of such services provided by an international leading cross-border bank and a top global trading platform in collaboration.

Ryan Taylor, Chief Compliance Officer of Brevan Howard Group and CEO of Brevan Howard Digital, stated, "The project is the latest example of ongoing industry innovation and institutionalization. As a significant investor in the digital asset space, we are delighted to collaborate with industry-leading institutions to drive the growth and development of the global digital currency ecosystem."

Previously in the news, September 2024: Standard Chartered Bank launched digital asset custody services in the UAE; October 2024: OKX appointed Standard Chartered Bank as its institutional third-party custody partner—Standard Chartered Bank.

About OKX

OKX is a leading global cryptocurrency exchange trusted by over 60 million users worldwide and renowned for its lightning-fast trading experience and reliable cryptocurrency app.

As a top partner of English Premier League champions Manchester City Football Club, McLaren Formula 1 Racing, and Olympic athlete Scott James, OKX is dedicated to providing a new interactive way to bring fans extraordinary experiences. OKX is also a top partner of the Chobecca Art Festival, actively promoting more creators to enter the Web3 space.

OKX always adheres to the core principles of transparency and security, regularly publishing reserve proof every month. For more information, please download the OKX APP or visit the official website.

Disclaimer

About Brevan Howard Digital

Brevan Howard Digital (referred to as BH Digital) is the digital currency and digital asset division of Brevan Howard Group, committed to helping institutional investors seize the diverse investment opportunities brought by the structural transformation and innovation of blockchain technology. BH Digital adopts a multi-manager, multi-strategy investment model, providing investors with a freely allocated, excess return pursuit, diversified layout digital asset full-ecosystem investment opportunity in the public and private markets. Currently, BH Digital, with over 60 staff members, has a global presence with 8 offices, managing over $20 billion in assets. For more information, please visit the official website.

About Standard Chartered Bank

Standard Chartered is a leading international banking group with a presence in 53 of the world's most dynamic markets. Our aim is to drive commerce and prosperity through our unique diversity, with our heritage and values fully aligned with our brand promise of being "here for good."

Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.

About Franklin Templeton

Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization, with its subsidiary operating under the name Franklin Templeton, serving clients in over 150 countries worldwide. The company is committed to helping clients achieve better investment outcomes through professional asset management, wealth management, and technology solutions. Franklin Templeton nurtures expert fund managers who provide a wide range of specialized services globally, including fixed income, equities, alternative investments, and multi-asset solutions. Headquartered in California, the company has offices in major financial markets worldwide. With over 75 years of investment experience, the company has over 1,500 investment professionals. As of February 28, 2025, Franklin Templeton's assets under management totaled $1.58 trillion.

All investment products, including money market funds, carry risks that may result in the loss of principal. Investment shares issued, redeemed, transferred, custodied, and recorded based on blockchain technology also have specific risks. For example, investment shares issued through blockchain technology may face risks including but not limited to: rapid changes in blockchain regulatory environments leading to security, privacy, or other regulatory issues, necessitating adjustments to the transaction recording method within the relevant shares.

This article is a contributed piece and does not represent the views of BlockBeats

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