Global crypto exchange OKX has launched a pioneering collateral mirroring program in partnership with global banking giant Standard Chartered. 

This initiative also includes early participation from Franklin Templeton and Brevan Howard. It allows institutional clients to use crypto assets and tokenized money market funds (MMFs) as off-exchange collateral for trading.

Notably, OKX is piloting the program under the Dubai Virtual Asset Regulatory Authority (VARA) regulatory framework.

Standard Chartered to Serve as Regulated Custodian

Meanwhile, Standard Chartered will serve as the regulated custodian within the Dubai International Financial Centre, under the oversight of the Dubai Financial Services Authority (DFSA).

The bank will safeguard collateral assets to ensure a secure and compliant environment for institutional clients engaging in the program.

Margaret Harwood-Jones, Standard Chartered’s Global Head of Finance, emphasized that the alliance with OKX marks a key step in offering secure, efficient custody solutions that foster trust and regulatory compliance in the digital asset scene. 

Moreover, Hong Fang, President of OKX, highlighted that the partnership sets an industry standard by combining Standard Chartered’s custodial expertise with OKX’s crypto trading leadership to create a trusted capital deployment environment.

Franklin Templeton’s Tokenized Fund Takes the Lead

Interestingly, Franklin Templeton, the trillion-dollar asset management firm, will be the first to offer a tokenized money market fund under the OKX–Standard Chartered program. These assets will integrate into institutional clients’ financial operations, improving capital efficiency and security.

In addition, Brevan Howard’s crypto-focused division, Brevan Howard Digital, is one of the first institutions to join the initiative.

OKX noted that the early involvement of these institutions highlights the increasing institutional appetite for collateral solutions that marry blockchain technology with established financial practices.

Notably, in his commentary, Roger Bayston, Head of Digital Assets at Franklin Templeton, highlighted that blockchain enables true ownership and easy asset movement. Bayston acknowledged that it supports the evolving financial ecosystem with on-chain solutions that replace traditional infrastructure.

Ryan Taylor, Group Head of Compliance at Brevan Howard, added that the program is part of ongoing innovation and institutionalization in the crypto industry. As a result, they are excited to partner with leaders to drive its global evolution.