In a landmark move set to redefine institutional engagement with digital assets, Standard Chartered Bank and leading crypto exchange OKX have launched a pioneering collateral mirroring programme. This innovative solution enables institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading activities—bridging traditional finance with the rapidly evolving digital asset ecosystem.
Backed by robust custody infrastructure and operating under a regulated framework, the programme promises enhanced capital efficiency, security, and regulatory compliance—key priorities for institutional players navigating the complexities of digital finance.
A New Era of Institutional Digital Asset Utilization
The newly launched collateral mirroring initiative marks a significant advancement in how financial institutions can leverage digital assets. By allowing crypto and tokenised funds to serve as collateral outside traditional exchange environments, the solution addresses long-standing challenges around liquidity fragmentation and inefficient capital use.
At the heart of this innovation is the strategic partnership between Standard Chartered—a Globally Systemically Important Bank (G-SIB)—and OKX, a top-tier digital asset platform. This collaboration combines the bank’s trusted custody capabilities with OKX’s advanced blockchain infrastructure, creating a secure and compliant environment for institutional-grade transactions.
The pilot programme is being rolled out under the regulatory oversight of the Dubai Virtual Asset Regulatory Authority (VARA), within the Dubai International Financial Centre (DIFC). This jurisdictional alignment ensures adherence to international financial standards while fostering innovation in virtual asset services.
How the Collateral Mirroring Programme Works
Under this model:
- Standard Chartered acts as the independent, regulated custodian, responsible for the safekeeping of collateral assets within the DIFC, under the supervision of the Dubai Financial Services Authority (DFSA).
- OKX, through its VARA-licensed entity, manages the collateral process and facilitates seamless transaction execution.
- Clients can now pledge eligible cryptocurrencies and tokenised funds to secure trading positions without transferring ownership or sacrificing control.
This structure ensures that assets remain securely held while still being actively utilised—maximising capital efficiency without compromising on safety.
Franklin Templeton is the first asset manager to participate, offering its tokenised money market fund through the platform. More funds are expected to join in the coming months, expanding access to diversified, yield-generating digital asset products.
“We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape,” said Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered. “Our collaboration with OKX represents a significant step forward in providing institutional clients with the confidence and efficiency they need.”
She added that leveraging the bank’s established custody framework ensures the highest levels of security and regulatory compliance—essential components for building trust in the digital asset space.
Driving Institutional Adoption Through Innovation
One of the biggest barriers to broader institutional adoption of digital assets has been the lack of integrated, compliant infrastructure. This programme directly addresses that gap by combining regulated custody with blockchain-enabled flexibility.
Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized the transformative potential of blockchain technology:
“Leveraging blockchain technology, our platform is built to support the dynamic and ever-evolving financial ecosystem. 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 shift toward on-chain settlement not only accelerates transaction finality but also reduces counterparty risk and operational friction—key advantages for large-scale institutional operations.
👉 See how leading institutions are adopting tokenised assets for faster, more efficient settlements.
Early Adoption Signals Strong Market Confidence
Brevan Howard Digital, the dedicated crypto arm of global macro hedge fund Brevan Howard, is among the first institutions to adopt the programme. Their participation underscores growing confidence in regulated, bank-backed digital asset solutions.
Ryan Taylor, Group Head of Compliance at Brevan Howard and Chief Administrative Officer of Brevan Howard Digital, stated:
“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.”
Such endorsements from major financial players signal a maturing market where digital assets are no longer fringe investments but core components of institutional portfolios.
Core Keywords Driving Industry Transformation
The success and scalability of this initiative hinge on several key concepts that are reshaping modern finance:
- Collateral mirroring
- Tokenised money market funds
- Institutional crypto adoption
- Digital asset custody
- Blockchain settlement
- Capital efficiency
- Regulated crypto solutions
- Off-exchange collateral
These keywords reflect both current market trends and future trajectories in fintech and institutional finance. Their natural integration into workflows like this collateral programme demonstrates how digital innovation can coexist with regulatory rigor.
Frequently Asked Questions (FAQ)
Q: What is collateral mirroring?
A: Collateral mirroring is a mechanism that allows digital assets held in secure custody to be used as collateral for trading or lending purposes without moving them from their original account. It enhances capital efficiency while maintaining security.
Q: Why is Standard Chartered’s involvement significant?
A: As a Globally Systemically Important Bank (G-SIB), Standard Chartered brings institutional-grade custody, compliance frameworks, and global reach—critical elements for mainstream adoption of digital asset solutions.
Q: Are tokenised funds safe?
A: Yes. When issued by reputable institutions like Franklin Templeton and backed by regulated custodians like Standard Chartered, tokenised funds offer transparency, auditability, and security comparable to—or exceeding—traditional fund structures.
Q: How does blockchain improve collateral management?
A: Blockchain enables real-time settlement, reduces counterparty risk, increases transparency, and allows for programmable financial logic (smart contracts), making collateral processes faster and more efficient.
Q: Is this solution available globally?
A: Currently operating under VARA’s regulatory framework in Dubai, it serves as a pilot. Expansion to other jurisdictions will depend on local regulatory alignment and market demand.
Q: Can any institution join the programme?
A: Participation is currently limited to qualified institutional clients meeting regulatory and due diligence requirements. Broader access may follow as the pilot scales.
👉 Learn how your institution can gain early access to next-generation digital collateral systems.
The Road Ahead
The StanChart-OKX collaboration sets a new benchmark for institutional-grade digital asset services. By merging traditional banking strength with cutting-edge blockchain functionality, it paves the way for wider integration of crypto into mainstream financial markets.
As more asset managers introduce tokenised products and regulators establish clearer frameworks, solutions like collateral mirroring will become standard tools in the institutional toolkit—driving efficiency, reducing costs, and accelerating settlement across global markets.
With early adopters already on board and strong momentum behind the initiative, 2025 could mark a turning point in how institutions interact with digital assets—not just as investments, but as functional components of modern finance infrastructure.