Standard Chartered, OKX, and Franklin Templeton have introduced a pilot trading platform enabling institutional clients to use cryptocurrency and tokenized money market funds as collateral in off-exchange transactions. This initiative, announced on April 10, 2025, marks a significant step toward integrating blockchain technology into institutional finance.
Brevan Howard Digital, a division of Brevan Howard, is among the first participants in this groundbreaking pilot.
How the Pilot Trading Platform Works
The platform allows institutional clients to:
- Use crypto assets and tokenized funds as collateral.
- Integrate on-chain assets into trading and risk management workflows.
- Maintain compliance with institutional security and regulatory standards.
Franklin Templeton’s Digital Assets division provides tokenized on-chain assets, which OKX clients can seamlessly incorporate into their operations.
Roger Bayston, Head of Digital Assets at Franklin Templeton, highlighted the advantages of blockchain integration:
"Minting assets on-chain enables true ownership and near-instantaneous settlement, removing reliance on traditional infrastructure and aligning operational speed with blockchain-based systems."
Key Participants: Brevan Howard Digital Joins Pilot
Brevan Howard Digital, a leader in digital asset management, is one of the first firms to participate.
Ryan Taylor, Chief Administrative Officer at Brevan Howard Digital, stated:
"This program reflects the institutionalization of digital assets and the growing availability of compliant infrastructure for large-scale participation."
👉 Discover how OKX is shaping the future of institutional crypto trading
Regulatory Framework and Custody Solutions
The pilot operates under Dubai’s Virtual Asset Regulatory Authority (VARA) and ensures:
- Capital efficiency through collateral mirroring.
- Enhanced asset protection via custody arrangements with Standard Chartered (a globally systemically important bank).
Roles in the Pilot:
- Standard Chartered acts as the independent custodian through its Dubai International Financial Centre (DIFC) entity.
- OKX, regulated under VARA, manages collateral and facilitates transactions.
Meeting Institutional Demand for Digital Assets
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, emphasized:
"This collaboration addresses institutional demand for trusted digital asset custody and supports the safe use of blockchain-based trading."
Hong Fang, President of OKX, added:
"Our infrastructure, combined with Standard Chartered’s custody services, creates a regulatory-grade environment for institutional participants."
👉 Learn more about institutional crypto solutions
FAQs
What is the purpose of this pilot?
The pilot enables institutions to use crypto and tokenized funds as collateral, improving capital efficiency and liquidity in trading.
Who are the key participants?
Standard Chartered, OKX, Franklin Templeton, and Brevan Howard Digital are leading the initiative.
How does blockchain integration benefit institutions?
Blockchain ensures instant settlement, true asset ownership, and reduced reliance on traditional financial infrastructure.
What regulatory framework supports this pilot?
The program operates under Dubai’s VARA regulations, ensuring compliance and security.
How does Standard Chartered contribute?
Standard Chartered provides custodial services, ensuring secure handling of digital collateral.
What role does OKX play?
OKX manages collateral and executes transactions within a regulated environment.
This initiative paves the way for broader adoption of tokenized assets in institutional finance, combining blockchain efficiency with regulatory compliance. Stay tuned for further developments as more firms join the pilot.