OKX and Standard Chartered pilot crypto collateral mirroring offering in UAE

Standard Chartered, a licensed crypto custodian in the UAE and its partner OKX, have come together under the regulatory umbrella of Dubai’s VARA to offer a collateral mirroring program where institutional clients could utilize crypto and tokenized money market funds as off exchange collateral for trading.

The collateral mirroring capability has been launched as a Pilot within the Dubai Virtual Asset Regulatory Authority’s regulatory framework, and it allows clients to benefit from enhanced protection against counterparty risk.

As per the press release, the 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 stated that robust and secure custody solutions are critical in the digital asset landscape and collaborating with OKX to enable the use of crypto and tokenized money market funds as collateral. She noted:

“This 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.”

OKX, a leading cryptocurrency exchange and global onchain technology company, today announced the appointment of Standard Chartered, a leading international cross-border bank connecting the world’s most dynamic markets, as a third-party crypto custodian for its global institutional business.

In October 2024, Standard Chartered became the custodial provider for OKX leveraging Standard Chartered’s global banking expertise with an aim to offer institutional investors a broader range of secure and reliable custody solutions.

Standard Chartered received a crypto custodial license in UAE

In September 2024, Standard Chartered announced that it had received a digital asset custody service in the UAE granted by the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Centre (DIFC), a leading global financial hub.

Brevan Howard Digital, the dedicated crypto and digital asset division of Brevan Howard, was confirmed as the inaugural client for the product. In the new announcement, it will also be among the first institutions to onboard.

Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital, commented:

“This program is the latest example of the continued innovation and institutionalization of the industry. As a significant investor in the digital assets space, we are thrilled to partner with industry leaders to further grow and evolve the crypto ecosystem globally.”

Additionally, Franklin Templeton will be the first in a series of money market funds that will be offered under the OKX-SCB program.

Hong Fang, President of OKX, explained that OKX is leveraging Standard Chartered’s position as a top custodian globally noting that the partnership sets an industry standard for current and potential institutional clients to deploy trading capital at scale in a trusted environment.

OKX will access on chain assets from Franklin Templeton

Franklin Templeton, which offers tokenization of real world assets will provide OKX access to on-chain assets developed by Franklin Templeton digital asset’s team and integrate them into the financial and operational structures.

Roger Bayston, Franklin Templeton Head of Digital Assets, stated that its blockchain enabled platform is build to support the evolving financial ecosystem. He explains, “We take an authentic approach, from directly investing in blockchain assets to developing innovative solutions with our in-house team. By ensuring assets are minted on-chain, we enable true ownership, allowing them to move and settle at blockchain speed – eliminating the need for traditional infrastructure.”

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