Standard Chartered and OKX launch pilot program for crypto collateral
Standard Chartered & OKX pilot a collateral program
In a significant move toward the institutional adoption of digital assets, Standard Chartered and OKX have jointly launched a pilot program that enables institutions to use cryptocurrencies and tokenized money market funds (MMFs) as collateral.
Announced on April 10 and operating under the strict oversight of the Dubai Virtual Asset Regulatory Authority, the initiative allows off-exchange collateral usage while enhancing security by entrusting custody to Standard Chartered—a globally systemically important bank—within the Dubai International Financial Centre.
Collaborative innovation and institutional impact
The program, developed in collaboration with crypto-friendly asset manager Franklin Templeton, marks a breakthrough in crypto lending. By permitting the use of crypto assets as collateral, the new system seeks to provide enhanced liquidity and risk management for institutional clients. Franklin Templeton’s head of digital assets, Roger Bayston, explained that by minting assets on-chain, true ownership is ensured, allowing rapid transfers and settlements without reliance on traditional infrastructure. Meanwhile, Standard Chartered’s global head of financing and securities services, Margaret Harwood-Jones, emphasized that this collaboration is a significant step in building a secure and compliant digital asset ecosystem. Brevan Howard Digital, one of the first institutions to trial the pilot, further underscored the system’s potential to reshape how collateral is utilized in an increasingly digital financial landscape.
As the pilot program progresses, market participants will watch closely to see if this innovative approach sets a new standard for crypto-based lending practices. The initiative could pave the way for broader adoption of tokenized collateral solutions, offering greater integration between traditional finance and the dynamic world of digital assets.
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