In a landmark development for the convergence of traditional finance and digital assets, Standard Chartered and OKX have unveiled a pioneering collateral mirroring programme—a first-of-its-kind initiative that allows institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading.
This innovative solution marks a significant leap forward in capital efficiency, security, and regulatory compliance, setting a new benchmark for institutional participation in the digital asset ecosystem.
Bridging Traditional Finance and Digital Assets
The collaboration leverages Standard Chartered’s status as a Globally Systemically Important Bank (G-SIB) and its robust custody infrastructure within the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority (DFSA). Meanwhile, OKX, a leading cryptocurrency exchange and onchain technology provider, brings its deep expertise in blockchain innovation and institutional-grade trading platforms.
👉 Discover how institutions are transforming capital efficiency with blockchain-powered solutions.
By combining these strengths, the programme enables clients to mirror their digital asset collateral under a regulated framework—offering peace of mind through independent, third-party custodianship while unlocking liquidity across markets.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, emphasized the strategic importance of secure custody in today’s evolving financial landscape:
“We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape. 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.”
Regulatory Innovation in Dubai
The collateral mirroring capability has been launched as a pilot under the Dubai Virtual Asset Regulatory Authority (VARA) framework—positioning Dubai as a global hub for regulated digital asset innovation.
Under this structure:
- Standard Chartered acts as the independent custodian, responsible for the safekeeping of assets used as collateral.
- OKX, through its VARA-regulated entity, manages collateral operations and facilitates seamless transaction execution.
This separation of duties ensures transparency, reduces counterparty risk, and aligns with international best practices in financial regulation.
For institutions navigating volatile digital markets, this model offers enhanced protection—an increasingly vital feature given recent industry challenges around asset safety and operational integrity.
Tokenised Money Market Funds: A New Era of Liquidity
A key component of the programme is the integration of tokenised real-world assets (RWA), starting with Franklin Templeton’s flagship money market fund. This marks the first in a planned series of tokenised investment vehicles available to OKX clients through the partnership.
Franklin Templeton, a trailblazer in asset tokenisation, has been at the forefront of bringing traditional financial products onto the blockchain. Through its Digital Assets Team, it has developed on-chain versions of its funds that offer:
- True ownership via blockchain-native tokens
- Faster settlement at network speed
- Greater transparency through immutable ledger records
Roger Bayston, Franklin Templeton’s Head of Digital Assets, highlighted the transformative potential:
“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.”
This integration allows institutional traders to seamlessly incorporate high-quality, regulated tokenised funds into their portfolios—blurring the lines between conventional finance and decentralised systems.
Early Adoption by Leading Institutions
The programme has already attracted major players in the institutional crypto space. Among the first adopters is Brevan Howard Digital, the dedicated digital asset arm of Brevan Howard—a leading global alternative investment manager.
Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital, praised the initiative:
“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.”
Their early adoption underscores growing demand among hedge funds, family offices, and asset managers for secure, compliant, and capital-efficient ways to deploy digital assets in mainstream trading strategies.
Core Keywords Driving Institutional Adoption
This initiative revolves around several core themes that are shaping the future of finance:
- Collateral mirroring
- Digital asset custody
- Tokenised real-world assets (RWA)
- Institutional crypto trading
- Blockchain settlement
- Regulated crypto solutions
- Capital efficiency
- Onchain finance
These keywords reflect both market trends and investor priorities—security, scalability, compliance, and interoperability—all addressed through this collaborative framework.
👉 See how top institutions are leveraging onchain technology for next-gen financial strategies.
Frequently Asked Questions (FAQ)
Q: What is collateral mirroring?
A: Collateral mirroring is a process where digital assets held in custody are represented or "mirrored" on a trading platform without transferring ownership. This allows institutions to use their crypto holdings as collateral for trades while maintaining secure storage with a regulated custodian.
Q: Why is this programme launching in Dubai?
A: Dubai has emerged as a forward-thinking jurisdiction for virtual asset regulation through VARA. Its clear regulatory framework enables innovative financial products like collateral mirroring to be tested in a supervised environment—making it ideal for pilot programmes involving global institutions.
Q: Which assets can be used as collateral?
A: Initially, eligible assets include major cryptocurrencies and tokenised money market funds such as those issued by Franklin Templeton. More tokenised real-world assets are expected to be added over time.
Q: How does this improve capital efficiency?
A: Instead of selling digital assets to raise fiat capital, institutions can now use them directly as collateral. This preserves exposure to asset appreciation while freeing up liquidity for trading—maximising capital utilisation.
Q: Is client data and asset information secure?
A: Yes. All assets are held securely by Standard Chartered under DFSA oversight, while OKX handles transaction facilitation through its regulated entity. The system is designed with multi-layered security protocols and strict access controls.
Q: Can retail investors participate?
A: Currently, the programme is designed exclusively for institutional clients. Retail access may be considered in future phases depending on regulatory approvals and market readiness.
👉 Explore institutional-grade crypto solutions built for security and scale.
The Future of Finance Is Onchain
The Standard Chartered–OKX collaboration exemplifies how legacy financial institutions and blockchain pioneers can co-create solutions that meet rigorous regulatory standards while unlocking new opportunities for growth.
As more asset classes become tokenised—from bonds and equities to private credit and real estate—the demand for secure, interoperable infrastructure will only increase. This programme lays the groundwork for a future where digital assets are not just speculative instruments but core components of institutional balance sheets.
With strong governance, cutting-edge technology, and early traction from elite financial players, this initiative may well become a blueprint for global adoption of onchain collateral systems.
For institutions seeking to navigate the next phase of financial evolution, the message is clear: the future of capital markets is being written onchain—and it’s already in motion.