Offering blockchain-based assets to traditional investors, crypto exchange OKX and multinational bank Standard Chartered launched a joint collateral mirroring program, which allows their clients to utilize crypto and tokenized money market funds as off-exchange collateral for trading.
The program is currently in a pilot test under Dubai Virtual Asset Regulatory Authority (VARA)’s regulatory framework and uses Globally Systemically Important Bank as the custodian for collateral.
Standard Chartered is a regulated custodian in the Dubai International Financial Centre under the Dubai Financial Services Authority. Meanwhile, OKX, through its VARA regulated entity, will be the one to manage collateral and facilitates transactions.
“Through leveraging Standard Chartered’s position as a top custodian globally, as well as our 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.”
OKX
For the entities involved, the newly-launched program allows traditional investors to enjoy the protection they offer against counterparty risk, which is an important concern in the current digital asset markets.
“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.”
Hong Fang, President, OKX
Meanwhile, OKX explained that the program’s clients will have access to on-chain assets of Franklin Templeton’s Digital Assets Team. Franklin Templeton is an asset manager focusing in tokenization and real world assets.
“Leveraging blockchain technology, our platform is built to support the dynamic and ever-evolving financial ecosystem. 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.”
Roger Bayston, Head of Digital Assets, Franklin Templeton
One of the first financial institutions to use the program is Brevan Howard Digital, the digital asset division of global alternative investment manager Brevan Howard.
“This programme is the latest example of the continued innovation and institutionalisation 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.
Ryan Taylor, Chief Administrative Offer, Brevan Howard Digital
This article is published on BitPinas: OKX, Standard Chartered Launch Collateral Mirroring Program For Crypto For Institutions
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