The financial world is witnessing a transformative shift as traditional banking giants and leading digital asset platforms converge to redefine capital efficiency and institutional trust. In a landmark collaboration, Standard Chartered and OKX have launched a pioneering collateral mirroring programme—a first-of-its-kind initiative enabling institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading.
This innovative solution marks a major leap forward in bridging the gap between conventional finance and the rapidly evolving digital asset ecosystem. By integrating robust custody infrastructure with cutting-edge blockchain technology, the programme delivers enhanced security, regulatory compliance, and operational efficiency for global institutions navigating the future of finance.
A New Era of Institutional Capital Efficiency
At the heart of this initiative is the concept of collateral mirroring, a mechanism that allows digital assets to be securely held by a regulated custodian while mirrored counterparts are used in trading environments. Standard Chartered, a Globally Systemically Important Bank (G-SIB), acts as the independent custodian within the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority (DFSA). Meanwhile, OKX manages the on-chain collateral framework through its entity licensed by the Dubai Virtual Asset Regulatory Authority (VARA).
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This dual-regulatory approach ensures that client assets are safeguarded under stringent banking standards while enabling seamless access to advanced crypto trading capabilities. The pilot programme is being rolled out under VARA’s progressive regulatory sandbox, offering a trusted environment for innovation in digital finance.
Strategic Partnerships Driving Innovation
The programme isn’t just a technological breakthrough—it’s a coalition of industry leaders shaping the future of asset tokenisation and institutional adoption.
Franklin Templeton, a global powerhouse in asset management and a pioneer in real-world asset (RWA) tokenisation, is the first fund provider integrated into the platform. Through this collaboration, OKX clients will gain direct access to on-chain versions of Franklin Templeton’s money market funds—fully minted and settled via blockchain. This enables true ownership, faster settlement, and greater liquidity without relying on legacy financial rails.
"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
Brevan Howard Digital, the crypto-focused arm of Brevan Howard—one of the world’s leading alternative investment managers—is among the first institutional participants. With over $2 billion in assets under management and a 60+ member team across eight global offices, their involvement underscores growing institutional confidence in regulated digital finance solutions.
"This programme is the latest example of the continued innovation and institutionalisation of the industry. We are thrilled to partner with leaders to further grow and evolve the crypto ecosystem globally."
— Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital
Enhancing Security and Trust in Digital Markets
One of the most pressing challenges in digital asset markets has been counterparty risk—the possibility that one party in a transaction may default. The Standard Chartered-OKX programme directly addresses this concern by introducing a trusted third-party custodian model.
Standard Chartered’s role as custodian ensures that all collateral remains securely stored under regulated banking oversight. This eliminates exposure to exchange-related risks while maintaining full transparency and auditability. Additionally, OKX publishes monthly Proof of Reserves, reinforcing its commitment to transparency and user protection.
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For institutions, this means they can now deploy capital at scale without compromising on safety or compliance—a critical milestone for widespread adoption.
Core Keywords Driving Adoption
This initiative sits at the intersection of several key trends reshaping modern finance:
- Collateral mirroring
- Tokenised money market funds
- Institutional crypto adoption
- Digital asset custody
- Real-world asset (RWA) tokenisation
- Blockchain settlement
- Regulated crypto trading
- Capital efficiency
These keywords reflect not only the technical foundation of the programme but also its strategic importance in aligning with global financial institutions’ needs for security, scalability, and regulatory alignment.
Frequently Asked Questions (FAQ)
Q: What is collateral mirroring?
A: Collateral mirroring is a process where digital assets are securely held by a regulated custodian, while mirrored representations are used for trading or financing activities. This ensures asset safety while enabling operational flexibility.
Q: Which assets can be used as collateral?
A: Initially, the programme supports cryptocurrencies and tokenised money market funds, including offerings from Franklin Templeton. More asset types may be added as the ecosystem expands.
Q: Is this available globally?
A: The pilot is currently operating under Dubai’s VARA regulatory framework within the DIFC. Expansion plans will depend on regional regulatory developments and institutional demand.
Q: How does this improve capital efficiency?
A: Institutions can use their existing digital assets as collateral without transferring custody, reducing idle capital and enabling faster deployment across trading desks.
Q: Who regulates the custodial side?
A: Standard Chartered operates as the custodian under DFSA regulation in the DIFC, ensuring compliance with international banking standards.
Q: Can retail investors participate?
A: The programme is currently designed for institutional clients. Retail access may be considered in future phases based on market evolution.
Building the Future of Finance Together
The partnership between Standard Chartered and OKX represents more than just a product launch—it’s a blueprint for how traditional finance and decentralised technologies can coexist and thrive. By combining Standard Chartered’s global custody expertise with OKX’s leadership in cryptocurrency trading and blockchain innovation, this programme sets a new benchmark for security, efficiency, and institutional readiness.
As real-world assets continue to migrate onto blockchains—from bonds and equities to private credit and commodities—programmes like this will become essential infrastructure for next-generation financial markets.
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With Franklin Templeton paving the way in tokenised fund innovation and Brevan Howard Digital validating the model through early adoption, momentum is building fast. The integration of regulated custody, on-chain settlement, and cross-border banking capabilities signals a maturing ecosystem ready for mainstream institutional embrace.
As we move deeper into 2025, this collaboration stands as a defining moment in the convergence of old and new finance—one where trust, technology, and transparency converge to unlock unprecedented opportunities for global markets.