A new pilot trading platform has been introduced by Standard Chartered, OKX, and Franklin Templeton, aimed at enabling institutional clients to utilize cryptocurrency and tokenized money market funds as collateral for off-exchange transactions, as stated in a release on April 10.
The Digital Assets division at Franklin Templeton will supply tokenized on-chain assets, which can be incorporated by OKX clients into their trading and risk management processes. This framework is designed to meet the security, regulatory compliance, and liquidity requirements of institutional players.
Roger Bayston, head of digital assets at Franklin Templeton, highlighted the critical nature of integrating with native blockchain technologies.
He remarked that creating assets on-chain allows for authentic ownership and rapid settlement, removing dependence on conventional infrastructure and synchronizing operational speed with blockchain-based systems.
Brevan Howard joins the initiative
This framework is designed to enable institutions to replicate collateral securely held with third parties while retaining trading flexibility.
Brevan Howard Digital, a division of the globally recognized investment manager, is among the first firms to engage in this pilot program.
Ryan Taylor, chief administrative officer at Brevan Howard Digital, noted that this program signifies the ongoing mainstream acceptance of the digital asset space and the growing availability of compliant infrastructure for large-scale involvement.
The program operates under the regulations of the Dubai Virtual Asset Regulatory Authority (VARA) and aims to enhance capital efficiency and bolster asset protection through custody arrangements with a globally significant bank.
In this pilot setup, Standard Chartered will serve as the independent custodian through its Dubai International Financial Centre (DIFC) entity, which is overseen by the Dubai Financial Services Authority.
Meanwhile, OKX, via its VARA-regulated entity, will oversee the collateral and facilitate transaction executions.
Catering to institutional needs
Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, stated that the initiative makes use of the bank’s established custody infrastructure to offer a secure solution for managing digital collateral.
She noted that this collaboration meets the rising institutional need for reliable digital asset custody and encourages the safe use of blockchain-based products within trading contexts.
Hong Fang, President of OKX, mentioned that the program serves as a framework for deploying trading capital securely and efficiently. Fang emphasized that the combination of OKX’s infrastructure with Standard Chartered’s custody services creates a regulatory-compliant environment that is well-suited for institutional participants.
This initiative is aimed at promoting broader adoption of tokenized instruments in institutional trading by allowing entities to use digital assets as collateral while ensuring regulatory compliance and custodial segregation.