In a landmark move set to redefine institutional engagement with digital assets, Standard Chartered Bank has partnered with OKX — a world-leading cryptocurrency exchange and blockchain technology innovator — to launch the global Collateral Mirroring Programme. This groundbreaking initiative enables institutional clients to use digital currencies and tokenized money market funds as eligible collateral for over-the-counter (OTC) trading, backed by one of the world’s systemically important banks (G-SIB). The project marks a major leap forward in capital efficiency, security, and regulatory compliance for institutional players navigating the evolving digital asset landscape.
Launched under the regulatory oversight of the Dubai Virtual Assets Regulatory Authority (VARA), the programme integrates cutting-edge blockchain capabilities with traditional financial infrastructure. By combining OKX’s advanced digital asset execution platform with Standard Chartered’s trusted custodial services, this collaboration establishes a secure, compliant, and scalable framework for institutions to deploy capital more efficiently in the digital economy.
Bridging Traditional Finance and Web3: A New Era of Trust and Efficiency
At the heart of the Collateral Mirroring Programme is a shared vision: to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi) through innovation that prioritizes security, transparency, and regulatory alignment.
Margaret Harwood-Jones, Global Head of Funding & Securities Services at Standard Chartered, emphasized the strategic importance of trust in digital markets:
“As the digital asset landscape evolves, so too does the need for credible, secure custody solutions. Our partnership with OKX allows clients to pledge digital assets and tokenized funds as collateral, marking a critical step in building confidence and improving capital efficiency. With Standard Charledged’s proven custodial infrastructure, we ensure the highest standards of safety and compliance — reinforcing trust across the entire digital asset ecosystem.”
This initiative directly addresses one of the most pressing challenges in today’s digital asset markets: counterparty risk. By leveraging Standard Chartered’s role as an independent custodian within the Dubai International Financial Centre (DIFC) — regulated by the Dubai Financial Services Authority (DFSA) — the programme ensures that all pledged assets are securely held, segregated, and protected from operational or insolvency risks.
Meanwhile, OKX manages the digital side of the transaction through its VARA-licensed entity, handling trade execution and on-chain operations with precision and transparency.
Tokenized Money Market Funds: Unlocking Liquidity with Real-World Assets
A key innovation within the programme is the integration of tokenized money market funds, beginning with offerings from Franklin Templeton — a globally recognized leader in asset management and real-world asset (RWA) tokenization.
Franklin Templeton will be among the first issuers to provide incentivized tokenized funds within this framework, enabling OKX users to seamlessly incorporate high-quality, yield-generating assets into their portfolios. These tokenized instruments represent a major advancement in liquidity management, offering institutions instant access to regulated, interest-bearing assets that can be used across trading, lending, and collateralization workflows.
Roger Bayston, Head of Digital Assets at Franklin Templeton, highlighted the transformative potential of blockchain-native finance:
“Our platform leverages blockchain technology to support the dynamic evolution of financial ecosystems. Whether it’s direct investment in blockchain assets or developing innovative internal solutions, we believe in true on-chain execution. On-chain minting enables genuine interoperability, ensuring transfers and settlements occur at blockchain speed — fundamentally transforming legacy infrastructure.”
By integrating Franklin Templeton’s tokenized funds, the programme enhances capital utilization while maintaining alignment with regulatory standards — a crucial factor for institutional adoption.
Industry Leaders Rally Behind Institutional Innovation
The momentum behind this initiative extends beyond its founding partners. Brevan Howard Digital, the digital asset arm of global macro hedge fund Brevan Howard, has announced its active participation in the programme, underscoring the growing demand for secure, bank-backed digital asset services.
Ryan Taylor, Group Chief Compliance Officer at Brevan Howard and CEO of Brevan Howard Digital, commented:
“This project exemplifies ongoing innovation and institutionalization within the digital asset space. As significant investors in digital assets, we’re proud to collaborate with leading institutions to advance the growth and maturity of the global crypto ecosystem.”
Such endorsements from elite investment firms validate the programme’s role as a benchmark for institutional-grade digital asset infrastructure.
👉 See how leading hedge funds are integrating digital assets into their core strategies.
Core Keywords Driving Institutional Adoption
This transformative initiative revolves around several core keywords that reflect its strategic significance in the evolving financial landscape:
- Digital assets
- Tokenized money market funds
- Real-world assets (RWA)
- Institutional crypto adoption
- Collateral efficiency
- Blockchain custody
- Regulated crypto solutions
- Capital optimization
These terms not only define the technological and financial pillars of the programme but also align closely with rising search intent from institutional investors seeking secure, compliant pathways into digital finance.
Frequently Asked Questions (FAQ)
Q: What is the Collateral Mirroring Programme?
A: It’s a joint initiative between Standard Chartered and OKX that allows institutional clients to use digital currencies and tokenized money market funds as collateral for OTC trades, backed by secure banking custody.
Q: Which regulatory bodies oversee this programme?
A: The programme operates under the Dubai Virtual Assets Regulatory Authority (VARA) framework, with Standard Chartered regulated by the Dubai Financial Services Authority (DFSA) as an independent custodian.
Q: Can any institution participate?
A: Participation is currently targeted at qualified institutional clients meeting specific eligibility criteria related to compliance, risk management, and asset size.
Q: What are tokenized money market funds?
A: These are blockchain-based representations of traditional money market funds — like those from Franklin Templeton — offering yield-bearing liquidity that can be used programmatically across digital platforms.
Q: Why is this important for institutional adoption?
A: It reduces counterparty risk, improves capital efficiency, integrates with existing financial systems, and provides regulatory clarity — all essential factors for large-scale institutional involvement.
Q: How does blockchain improve collateral management?
A: Blockchain enables faster settlement, transparent tracking of asset movements, automated compliance checks, and real-time reconciliation — significantly enhancing operational efficiency.
👉 Explore how institutions are using blockchain to revolutionize collateral management today.
A Blueprint for the Future of Finance
The Standard Chartered–OKX Collateral Mirroring Programme is more than a technical innovation — it’s a blueprint for the future of global finance. By merging trusted banking infrastructure with next-generation blockchain capabilities, it sets a new standard for security, efficiency, and interoperability in institutional digital asset usage.
As real-world asset tokenization gains momentum and global regulators establish clearer frameworks, initiatives like this will play a pivotal role in accelerating mainstream adoption. For institutions looking to optimize capital without compromising compliance or safety, this partnership offers a proven pathway forward.
With continued support from leaders like Franklin Templeton and Brevan Howard Digital, the programme demonstrates that collaboration — not competition — is driving the next wave of financial transformation.