Standard Chartered and OKX Launch Collateral Mirroring Programme for Institutional Clients

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In a significant move poised to reshape institutional engagement with digital assets, Standard Chartered Bank has partnered with leading cryptocurrency exchange OKX to launch a collateral mirroring programme. This innovative initiative allows institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading activities—offering enhanced capital efficiency, security, and regulatory compliance.

The collaboration leverages Standard Chartered’s status as a Globally Systemically Important Bank (G-SIB) and its robust custody infrastructure, combined with OKX’s leadership in crypto trading and its regulatory standing under Dubai’s Virtual Asset Regulatory Authority (VARA). Together, they aim to bridge traditional finance and digital asset markets by creating a trusted, scalable environment for institutional capital deployment.

How the Collateral Mirroring Programme Works

At the core of this pilot programme is the concept of collateral mirroring, which enables institutions to pledge digital assets on one platform while maintaining equivalent value in a secure, regulated custodial account. In this case:

This dual-role structure reduces counterparty risk—a persistent concern in digital asset markets—by ensuring that assets remain under the control of a regulated financial institution while still being usable for active trading.

👉 Discover how institutions are unlocking new capital efficiency with secure crypto-backed trading solutions.

Regulatory Framework and Geographic Focus

The programme has been launched as a pilot under the Dubai Virtual Asset Regulatory Authority (VARA) framework—a jurisdiction increasingly seen as a forward-thinking hub for digital asset innovation. By aligning with VARA’s regulations, the partnership ensures compliance with international standards while fostering trust among global institutional investors.

Dubai’s regulatory clarity provides an ideal testing ground for such financial innovations, especially those involving cross-border custody and asset tokenisation. The pilot phase will allow both parties to refine operational workflows, assess risk management protocols, and evaluate scalability before potential expansion into other regulated markets.

Enhancing Security and Capital Efficiency

One of the most pressing challenges for institutions entering the digital asset space is balancing security with liquidity utilisation. Traditional custody models often require assets to be locked away, reducing their utility. With collateral mirroring, institutions can maintain security without sacrificing capital agility.

By using Standard Chartered’s established custody systems—trusted by banks, asset managers, and corporations worldwide—the programme ensures:

Meanwhile, OKX brings deep expertise in digital asset operations, including real-time pricing engines, automated margining systems, and high-throughput trading infrastructure.

Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, emphasized the strategic importance of the partnership:

"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."

She added: "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."

Tokenised Money Market Funds: A Game-Changer for Yield-Seeking Institutions

An integral component of the programme is the inclusion of tokenised money market funds, starting with Franklin Templeton as the first issuer. These blockchain-based versions of traditional money market instruments offer:

For institutions looking to earn yield on idle capital while maintaining liquidity, tokenised funds represent a compelling alternative to holding cash or stablecoins alone.

Hong Fang, President of OKX, highlighted the broader implications:

"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."

👉 See how tokenised assets are transforming institutional finance—securely and efficiently.

Early Adoption and Market Response

The programme has already attracted early adopters from sophisticated corners of the digital asset world. Notably, the dedicated crypto and digital asset division of Brevan Howard, a leading alternative asset manager, is among the first institutions to onboard.

This early traction signals growing confidence in hybrid financial models that blend traditional banking safeguards with blockchain-native capabilities. As more asset managers explore tokenisation and crypto integration, solutions like this collateral mirroring programme could become foundational infrastructure for next-generation capital markets.

Frequently Asked Questions (FAQ)

Q: What is collateral mirroring?
A: Collateral mirroring is a mechanism where digital assets pledged as collateral are mirrored in value within a regulated custodial account. It allows institutions to use crypto assets for trading while keeping them securely held by a trusted third party.

Q: Why is Standard Chartered’s involvement important?
A: As a Globally Systemically Important Bank (G-SIB), Standard Chartered brings regulatory credibility, global reach, and proven custody infrastructure—key factors in building institutional trust in digital asset solutions.

Q: Are only cryptocurrencies accepted as collateral?
A: No. The programme supports both cryptocurrencies and tokenised money market funds, such as those issued by Franklin Templeton. This diversification enhances flexibility for institutional investors.

Q: Where is the programme currently available?
A: It is being piloted under Dubai’s Virtual Asset Regulatory Authority (VARA) framework, with potential for future expansion into other regulated jurisdictions.

Q: How does this reduce counterparty risk?
A: Because Standard Chartered holds the actual assets in custody, clients aren’t exposed to exchange insolvency risks. The crypto remains usable via mirroring but stays protected under traditional banking safeguards.

Q: Is this programme affected by OKX’s past regulatory penalties?
A: While OKX previously faced penalties related to anti-money laundering compliance, this new initiative operates under VARA regulation in Dubai—a jurisdiction with strict oversight. The partnership with a major bank also introduces additional layers of compliance and transparency.

👉 Learn how regulated institutions are building the future of finance—today.

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Conclusion

The collaboration between Standard Chartered and OKX marks a pivotal development in the convergence of traditional finance and digital assets. By combining secure custody with flexible trading utility, the collateral mirroring programme addresses two of the biggest barriers to institutional adoption: risk management and capital efficiency.

As tokenisation gains momentum across bonds, equities, and alternative assets, initiatives like this lay the groundwork for a more integrated, liquid, and trustworthy financial ecosystem—one where digital assets are not just traded but fully integrated into mainstream financial workflows.

With strong early adoption and regulatory alignment, this pilot could soon evolve into a widely adopted model for institutional engagement in the digital economy.