Collaboration Background: The Need for Integration Between Traditional Finance and the Crypto Sector

The United Arab Emirates (UAE) is Advancing RWA Development

Standard Chartered Bank is collaborating with cryptocurrency exchange OKX to advance a collateral mirroring initiative. This program allows institutional clients to utilize cryptocurrencies and tokenized money market funds as collateral for over-the-counter (OTC) transactions.

Both partners claim that the introduction of a Global Systemically Important Bank (G-SIB) to custody collateral for institutional clients significantly enhances their security and capital efficiency.

The collateral mirroring feature has been piloted within the regulatory framework of the Dubai Virtual Assets Regulatory Authority (VARA), promising enhanced counterparty risk protection for clients—a major concern in the current digital asset market.

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As an independent and regulated custodian, Standard Chartered ensures the secure storage of assets used as collateral. OKX, through its VARA-regulated entity, manages the collateral and facilitates transactions.

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, stated: "We fully recognize the importance of robust and secure custody solutions, especially in the evolving digital asset space. Our collaboration with OKX to allow cryptocurrencies and tokenized money market funds to be used as collateral is a critical step in providing institutional clients with the confidence and efficiency they need."

"With our established custody infrastructure, we can ensure the highest standards of security and regulatory compliance, thereby enhancing trust in the digital asset ecosystem," she added.

Franklin Templeton will be the first in a series of money market funds launched under the OKX-SCB initiative. The cryptocurrency and digital asset division of alternative asset manager Brevan Howard is among the earliest participants in the program.

Hong Fang, President of OKX, commented: "Leveraging Standard Chartered's position as a global top-tier custodian and OKX's market-leading position in cryptocurrency trading, this collaboration sets an industry standard, enabling existing and potential institutional clients to deploy trading funds at scale in a trusted environment."

Earlier this year, OKX operator Aux Cayes Fintech was fined $504 million for admitting violations of U.S. anti-money laundering laws.

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Analysis:

Standard Chartered's custody + Dubai VARA regulation + DFSA oversight! Triple protection tighter than your neighborhood security! OKX handles transactions, Standard Chartered safeguards funds, and regulators keep watch—this setup is stronger than a Swiss bank vault!

When Wall Street moves assets onto the blockchain, it will bring about significant changes in global financial asset allocation and trading. Franklin Templeton's on-chain fund access and Brevan Howard's early entry—these Wall Street veterans know better than you! Traditional collateral processes take three days; now, blockchain settlement is faster than a food delivery guy! Roger Baysto's emphasis on "true on-chain" is key, with ownership as clear as glass and transfers as swift as lightning.

At its core, this initiative is about creating liquidity for institutions—digital currencies are no longer just casino chips but become income-generating assets!

Staking mirroring = liquidity bomb—previously, locked assets meant waiting to die; now, staked assets can still be traded!

Traditional asset managers are making a splash—issuing tokenized funds while reaping blockchain dividends, doubling their profits!

Innovative Highlights:

The core of this program is that institutions can directly use their held crypto assets, such as Bitcoin and Ethereum, as well as tokenized money market funds as collateral to obtain corresponding financial services. This innovative mechanism effectively overcomes the complexities and low recognition of past crypto asset collateral processes.

For example, if an institution holds a large amount of Ethereum (ETH), through this program, it can quickly complete the collateralization process to obtain liquidity support, without facing asset liquidation or going through the cumbersome traditional collateral review process. Allowing institutions to use crypto assets as collateral will attract more institutions holding crypto assets for the long term to participate in market operations, thereby enhancing market liquidity. At the same time, the continuous improvement of the collateral mechanism also lays a solid foundation for more financial derivative services, such as lending and financing, further strengthening the financial attributes of the crypto market.

This program provides a more efficient asset utilization path. Without changing the long-term holding strategy for crypto assets, institutions can obtain short-term funds through collateralization, optimizing capital allocation efficiency. For example, enterprises can invest the funds obtained from collateralization into research and development or business expansion while retaining the potential appreciation space of crypto assets. This flexibility is difficult to achieve under the traditional financial collateral model, fully demonstrating the innovative value of this collaboration.

The collaboration between Standard Chartered and OKX is a significant practice in the financial application of crypto assets. It not only brings new operational space for institutional investors but also signals that the integration of the crypto market with the traditional financial system is moving from concept to practical application. Tokenizing traditional assets has gone from being a possibility to a full-speed advancement.

Collaboration Background: The Need for Integration Between Traditional Finance and the Crypto Sector

The United Arab Emirates (UAE) is Advancing RWA Development

Standard Chartered Bank is collaborating with cryptocurrency exchange OKX to advance a collateral mirroring initiative. This program allows institutional clients to utilize cryptocurrencies and tokenized money market funds as collateral for over-the-counter (OTC) transactions.

Both partners claim that the introduction of a Global Systemically Important Bank (G-SIB) to custody collateral for institutional clients significantly enhances their security and capital efficiency.

The collateral mirroring feature has been piloted within the regulatory framework of the Dubai Virtual Assets Regulatory Authority (VARA), promising enhanced counterparty risk protection for clients—a major concern in the current digital asset market.

Image

As an independent and regulated custodian, Standard Chartered ensures the secure storage of assets used as collateral. OKX, through its VARA-regulated entity, manages the collateral and facilitates transactions.

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, stated: "We fully recognize the importance of robust and secure custody solutions, especially in the evolving digital asset space. Our collaboration with OKX to allow cryptocurrencies and tokenized money market funds to be used as collateral is a critical step in providing institutional clients with the confidence and efficiency they need."

"With our established custody infrastructure, we can ensure the highest standards of security and regulatory compliance, thereby enhancing trust in the digital asset ecosystem," she added.

Franklin Templeton will be the first in a series of money market funds launched under the OKX-SCB initiative. The cryptocurrency and digital asset division of alternative asset manager Brevan Howard is among the earliest participants in the program.

Hong Fang, President of OKX, commented: "Leveraging Standard Chartered's position as a global top-tier custodian and OKX's market-leading position in cryptocurrency trading, this collaboration sets an industry standard, enabling existing and potential institutional clients to deploy trading funds at scale in a trusted environment."

Earlier this year, OKX operator Aux Cayes Fintech was fined $504 million for admitting violations of U.S. anti-money laundering laws.

Image

Analysis:

Standard Chartered's custody + Dubai VARA regulation + DFSA oversight! Triple protection tighter than your neighborhood security! OKX handles transactions, Standard Chartered safeguards funds, and regulators keep watch—this setup is stronger than a Swiss bank vault!

When Wall Street moves assets onto the blockchain, it will bring about significant changes in global financial asset allocation and trading. Franklin Templeton's on-chain fund access and Brevan Howard's early entry—these Wall Street veterans know better than you! Traditional collateral processes take three days; now, blockchain settlement is faster than a food delivery guy! Roger Baysto's emphasis on "true on-chain" is key, with ownership as clear as glass and transfers as swift as lightning.

At its core, this initiative is about creating liquidity for institutions—digital currencies are no longer just casino chips but become income-generating assets!

Staking mirroring = liquidity bomb—previously, locked assets meant waiting to die; now, staked assets can still be traded!

Traditional asset managers are making a splash—issuing tokenized funds while reaping blockchain dividends, doubling their profits!

Innovative Highlights:

The core of this program is that institutions can directly use their held crypto assets, such as Bitcoin and Ethereum, as well as tokenized money market funds as collateral to obtain corresponding financial services. This innovative mechanism effectively overcomes the complexities and low recognition of past crypto asset collateral processes.

For example, if an institution holds a large amount of Ethereum (ETH), through this program, it can quickly complete the collateralization process to obtain liquidity support, without facing asset liquidation or going through the cumbersome traditional collateral review process. Allowing institutions to use crypto assets as collateral will attract more institutions holding crypto assets for the long term to participate in market operations, thereby enhancing market liquidity. At the same time, the continuous improvement of the collateral mechanism also lays a solid foundation for more financial derivative services, such as lending and financing, further strengthening the financial attributes of the crypto market.

This program provides a more efficient asset utilization path. Without changing the long-term holding strategy for crypto assets, institutions can obtain short-term funds through collateralization, optimizing capital allocation efficiency. For example, enterprises can invest the funds obtained from collateralization into research and development or business expansion while retaining the potential appreciation space of crypto assets. This flexibility is difficult to achieve under the traditional financial collateral model, fully demonstrating the innovative value of this collaboration.

The collaboration between Standard Chartered and OKX is a significant practice in the financial application of crypto assets. It not only brings new operational space for institutional investors but also signals that the integration of the crypto market with the traditional financial system is moving from concept to practical application. Tokenizing traditional assets has gone from being a possibility to a full-speed advancement.