The financial world is witnessing a transformative leap in digital asset integration as Standard Chartered and OKX, a leading cryptocurrency exchange and global onchain technology company, unveil a groundbreaking collateral mirroring programme. This innovative initiative enables institutional clients to use cryptocurrencies and tokenised money market funds as off-exchange collateral for trading—ushering in a new era of capital efficiency, security, and regulatory alignment.
By combining Standard Chartered’s status as a Globally Systemically Important Bank (G-SIB) with OKX’s cutting-edge blockchain infrastructure, the programme addresses two critical needs in today’s digital asset markets: secure custody and counterparty risk mitigation. Institutional investors can now deploy their digital assets more efficiently while benefiting from the trusted oversight of a regulated financial institution.
A New Benchmark in Institutional Digital Asset Services
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At the heart of this collaboration is the concept of collateral mirroring—a process where digital assets held by clients are mirrored on-chain while being securely custodied off-chain by a regulated entity. In this case, Standard Chartered acts as the independent custodian within the Dubai International Financial Centre (DIFC), operating under the supervision of the Dubai Financial Services Authority (DFSA). Meanwhile, OKX manages the on-chain collateral framework through its Virtual Asset Regulatory Authority (VARA)-regulated entity.
This dual-layered structure ensures that client assets remain protected under traditional banking safeguards while unlocking their utility in decentralized finance environments. It's a pivotal development for institutional adoption, offering peace of mind without sacrificing innovation.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, emphasized the strategic importance of secure custody:
“We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape. Our collaboration with OKX represents a significant step forward in providing institutional clients with the confidence and efficiency they need. By leveraging our established custody infrastructure, we are ensuring the highest standards of security and regulatory compliance.”
Enhancing Trust Through Regulatory Alignment
The programme has launched as a pilot under VARA’s regulatory framework, reinforcing its commitment to compliance and transparency. Dubai has emerged as a global hub for virtual asset innovation, and this initiative aligns perfectly with its vision of fostering responsible fintech growth.
Clients participating in the programme benefit from:
- Reduced counterparty risk through independent, bank-level custody
- Seamless integration of digital assets into existing trading operations
- Regulatory clarity via oversight from both DFSA and VARA
- Greater liquidity utilization by unlocking capital tied up in digital holdings
These advantages are particularly valuable in an environment where institutional players demand both performance and accountability.
Franklin Templeton Joins as First Tokenised Fund Provider
A major highlight of the OKX-SCB programme is the inclusion of Franklin Templeton, a pioneer in real-world asset (RWA) tokenisation, as the first provider of tokenised money market funds. Clients will gain access to on-chain versions of Franklin Templeton’s funds, developed by its dedicated Digital Assets Team.
Roger Bayston, Franklin Templeton Head of Digital Assets, explained the firm’s vision:
“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 integration marks a significant milestone in bridging traditional finance with decentralised systems, enabling institutions to access high-quality, yield-generating assets in a programmable format.
Early Adoption by Leading Institutional Players
The programme has already attracted early participation from prominent names in global finance. Brevan Howard Digital, the crypto-focused arm of the renowned alternative investment manager Brevan Howard, is among the first institutions to onboard.
Ryan Taylor, Group Head of Compliance at Brevan Howard and CAO of Brevan Howard Digital, shared his perspective:
“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 underscore growing confidence in hybrid financial models that blend traditional banking strength with blockchain agility.
Core Keywords Driving Industry Transformation
The success of this initiative hinges on several key concepts reshaping modern finance:
- Cryptocurrency
- Tokenised assets
- Institutional adoption
- Collateral mirroring
- Digital asset custody
- Real-world assets (RWA)
- Blockchain settlement
- Capital efficiency
These terms reflect not only the technical foundation of the programme but also its broader impact on how institutions manage and deploy capital in a digitised economy.
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Frequently Asked Questions (FAQ)
Q: What is collateral mirroring?
A: Collateral mirroring is a mechanism that allows digital assets to be used as collateral for trading while being securely held by a regulated custodian. The value is "mirrored" on-chain, enabling liquidity without compromising security.
Q: Who can participate in this programme?
A: The programme is designed for institutional clients, including hedge funds, asset managers, and financial intermediaries operating in regulated jurisdictions.
Q: How does Standard Chartered ensure asset security?
A: As a G-SIB regulated by the DFSA, Standard Chartered provides bank-grade custody services, ensuring assets are safeguarded under stringent compliance and risk management protocols.
Q: What role does OKX play in the partnership?
A: OKX manages the on-chain infrastructure, facilitates collateral tracking and settlement, and provides access to its trading ecosystem—all through its VARA-regulated entity.
Q: Are tokenised funds regulated?
A: Yes. The tokenised money market funds offered via Franklin Templeton are issued under clear regulatory frameworks and backed by real underlying assets.
Q: Can other fund providers join the programme?
A: While Franklin Templeton is the first launch partner, the platform is designed to integrate additional regulated asset managers over time.
The Future of Institutional Finance Is Here
This collaboration between Standard Chartered and OKX sets a new benchmark for how traditional finance and digital innovation can coexist. By enabling secure, compliant, and efficient use of digital assets as collateral, it removes long-standing barriers to entry for institutions.
As more players embrace tokenisation, on-chain settlement, and regulated custody models, we’re moving toward a future where capital flows seamlessly across ecosystems—without sacrificing trust or control.
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The OKX-SCB collateral mirroring programme isn’t just an incremental upgrade—it’s a foundational shift in how global markets operate. With strong regulatory backing, elite institutional participation, and cutting-edge technology at its core, it represents a clear roadmap for the future of finance.