We're pleased to announce today that we've launched a world leading collateral mirroring partnership with Standard Chartered.
The partnership, which includes participation from Brevan Howard Digital and Franklin Templeton, enables institutional clients to utilise cryptocurrencies and tokenised money market funds as off-exchange collateral for trading. This initiative significantly enhances security and capital efficiency for institutional clients by using a Globally Systemically Important Bank (G-SIB) as the custodian for collateral.
The collateral mirroring capability has been launched as a Pilot within the Dubai Virtual Asset Regulatory Authority’s (VARA) regulatory framework, and it allows clients to benefit from enhanced protection against counterparty risk, a significant concern in the current digital asset markets. Standard Chartered acts as the independent, regulated custodian in the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority, ensuring the safe storage of the assets used as collateral. We will, through our VARA regulated entity, manage collateral and facilitate transactions.
Franklin Templeton will be the first in a series of money market funds that will be offered under the OKX-SCB programme.
Through leveraging Standard Chartered's position as a top custodian globally, as well as our market leadership in cryptocurrency trading, the partnership sets an industry standard for current and potential institutional clients to deploy trading capital at scale in a trusted environment.
Through this collaboration, our clients will gain access to on-chain assets developed by Franklin Templeton’s Digital Assets Team, seamlessly integrating them into their financial and operational structures.
Brevan Howard Digital, the dedicated crypto and digital asset division of Brevan Howard, a leading global alternative investment manager, is among the first few institutions to onboard onto this pioneering programme, highlighting the importance of such capabilities being offered by a leading international cross-border bank and a highly reputable global exchange.
