Standard Chartered and OKX have partnered to launch a world-leading collateral mirroring programme.
Takeaway Points
- Standard Chartered has partnered with OKX.
- The aim is to launch a collateral mirroring programme.
- OKX, through its VARA-regulated entity, will manage collateral and aid transactions.
Collateral Mirroring Programme
Standard Chartered, on Thursday, announced the launch of a groundbreaking, world-leading collateral mirroring programme with OKX, a leading cryptocurrency exchange and global on-chain technology company, to enable institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading. This initiative significantly enhances security and capital efficiency for institutional clients by using a Globally Systemically Important Bank (G-SIB) as the custodian for their collateral.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, remarked, “We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape, and 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. 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.”
Hong Fang, President of OKX, commented, “As the digital assets ecosystem becomes more ingrained within traditional finance, we strive to both drive growth and safeguard client assets in the most capital efficient manner. By leveraging Standard Chartered’s position as a top custodian globally, as well as OKX’s market leadership in cryptocurrency trading, the partnership sets an industry standard for current and potential institutional clients to deploy trading capital at scale in a trusted environment.”
Virtual Asset Regulatory Authority’s
According to the report, Standard Chartered acts as the independent, regulated custodian in the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority, ensuring the safe storage of the assets used as collateral, while OKX, through its VARA-regulated entity, manages collateral and aid transactions.
Franklin Templeton will be the first in a series of money market funds that will be offered under the OKX-SCB programme, Standard Chartered said.
The Partnership
OKX clients, through this partnership, will have access to on-chain assets developed by Franklin Templeton’s Digital Assets Team and easily integrate them into their financial and operational structures, the report stated.
Brevan Howard Digital is among the first few institutions to onboard onto this pioneering programme, according to the report.
About Standard Chartered
Standard Chartered is a leading international banking group, with a presence in 53 of the world’s most dynamic markets. Their purpose is to drive commerce and prosperity through our unique diversity, and their heritage and values are expressed in our brand promise, Here for Good.
Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.
About OKX
OKX is a leading global crypto exchange. Trusted by more than 60 million global users, OKX is known for being one of the fastest and most reliable crypto apps in the world.
As a top brand partner of English Premier League champions Manchester City FC, McLaren Formula 1, and Olympian Scotty James, OKX aims to supercharge the fan experience with new engagement opportunities. OKX is also the top partner of the Tribeca Festival as part of an initiative to bring more creators into web3.
OKX is committed to transparency and security and publishes its Proof of Reserves on a monthly basis.
