In a landmark move set to redefine institutional engagement with digital assets, Standard Chartered and OKX have unveiled a pioneering collateral mirroring programme—a first-of-its-kind initiative that enables the use of cryptocurrencies and tokenised money market funds as off-exchange collateral for trading. This collaboration, further strengthened by Franklin Templeton’s participation, marks a transformative step toward bridging traditional finance and the rapidly evolving digital asset ecosystem.
Backed by one of the world’s most trusted financial institutions and a global leader in cryptocurrency technology, the programme is designed to deliver unmatched capital efficiency, security, and regulatory compliance for institutional clients navigating the complexities of digital asset markets.
A New Era in Institutional Digital Asset Management
The programme operates under the regulatory oversight of the Dubai Virtual Asset Regulatory Authority (VARA), launching as a pilot within the Dubai International Financial Centre (DIFC). It introduces a robust framework where Standard Chartered serves as the independent, regulated custodian—ensuring safekeeping of client assets—while OKX manages collateral operations through its VARA-regulated entity.
This dual-role structure ensures that clients benefit from both bank-grade custody and cutting-edge blockchain infrastructure, significantly reducing counterparty risk—a persistent concern in decentralised and hybrid financial environments.
Core Benefits of the Collateral Mirroring Framework
- Enhanced Security: Assets are held by a Globally Systemically Important Bank (G-SIB), offering institutional-grade protection.
- Regulatory Compliance: Fully aligned with VARA’s progressive regulatory standards, ensuring transparency and accountability.
- Capital Efficiency: Enables seamless reuse of digital assets as collateral across trading desks without redundant capital allocation.
- Interoperability: Integrates tokenised real-world assets (RWAs) into on-chain financial workflows, streamlining cross-market operations.
Strategic Collaboration with Franklin Templeton
Franklin Templeton, a trailblazer in asset tokenisation and digital innovation, is the first fund provider to join the OKX–Standard Chartered programme. Its tokenised money market funds will be available to clients through the platform, providing access to yield-generating, regulated financial instruments on-chain.
Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized the firm’s commitment to authenticity and innovation:
“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 OKX clients to access high-quality, tokenised RWAs that mirror traditional fund structures but operate with the speed, transparency, and programmability of blockchain networks.
Industry Adoption: Brevan Howard Digital Joins as Early Participant
The programme has already attracted significant institutional interest, with Brevan Howard Digital— the crypto-focused arm of global alternative investment firm Brevan Howard—among the first to onboard.
Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital, noted:
“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 participation underscores growing confidence among institutional players in hybrid financial models that combine regulated custody with advanced blockchain execution.
Addressing Key Institutional Pain Points
Traditional barriers to crypto adoption—such as custody risks, regulatory uncertainty, and fragmented settlement systems—are directly addressed by this initiative. By leveraging Standard Chartered’s global custodial infrastructure and OKX’s technological expertise, the programme offers:
- Reduced operational friction in cross-border trading
- Faster settlement times via on-chain asset movement
- Greater flexibility in collateral management
- Seamless integration with existing treasury and trading systems
Keyword Integration for Search Visibility
This initiative sits at the intersection of several high-growth financial trends. The core keywords naturally embedded throughout include:
- Crypto collateral
- Tokenised money market funds
- Institutional digital assets
- Collateral mirroring
- Real world asset tokenisation (RWA)
- On-chain finance
- Digital asset custody
- Blockchain settlement
These terms reflect strong search intent from financial professionals seeking secure, scalable solutions for integrating digital assets into mainstream portfolios.
Frequently Asked Questions (FAQ)
Q: What is collateral mirroring?
A: Collateral mirroring is a mechanism that allows digital assets held under regulated custody to be represented and used as collateral in off-exchange trading environments. It ensures security through trusted custodians while enabling capital efficiency via blockchain-based tracking and settlement.
Q: Which assets can be used as collateral under this programme?
A: Initially, eligible assets include select cryptocurrencies and tokenised money market funds—starting with offerings from Franklin Templeton. More tokenised real-world assets are expected to be added over time.
Q: Is this programme available globally?
A: Currently launched as a pilot under Dubai’s VARA regulatory framework, it primarily serves international institutional clients operating within or connected to the DIFC. Expansion plans may follow based on regulatory approvals.
Q: How does Standard Chartered ensure asset security?
A: As a G-SIB regulated by the Dubai Financial Services Authority (DFSA), Standard Chartered applies its rigorous global custody standards—including cold storage protocols, multi-signature wallets, and audit trails—to safeguard client-held digital assets.
Q: Can other asset managers join the programme?
A: Yes. While Franklin Templeton is the first fund partner, the framework is designed to onboard additional regulated asset managers offering tokenised products, promoting broader market participation.
Q: What role does OKX play in the collateral process?
A: OKX facilitates the technical execution of collateral management through its regulated entity in Dubai. This includes real-time monitoring, margin calculations, and transaction facilitation—all compliant with VARA requirements.
The Future of Institutional Finance Is Hybrid
The launch of this collateral mirroring programme signals a pivotal shift: digital assets are no longer operating on the fringes of finance but are being integrated into core institutional workflows through secure, compliant, and efficient mechanisms.
As more banks, exchanges, and asset managers adopt similar models, we can expect increased liquidity, reduced systemic risk, and greater innovation across capital markets—powered by blockchain technology and anchored in regulatory trust.
This collaboration between Standard Chartered, OKX, and Franklin Templeton sets a new benchmark—not just for what’s possible today, but for how traditional and digital finance will co-evolve tomorrow. For institutions seeking scalable access to digital markets without compromising on safety or compliance, this programme offers a proven pathway forward.