Standard Chartered and OKX have rolled out a pilot program that allows institutional clients to use crypto and tokenized money market funds (MMFs) as collateral, marking a new stride in the intersection of traditional finance and blockchain infrastructure.
The initiative enables institutions to hold digital asset collateral securely off-exchange, with Standard Chartered acting as the regulated custodian through its operations in the Dubai International Financial Centre. The Dubai Virtual Asset Regulatory Authority is overseeing the pilot.
Crypto-friendly asset manager Franklin Templeton is partnering in the launch, with Brevan Howard Digital among the first participants to test the framework. The program seeks to reduce counterparty risk by eliminating the need to place collateral directly with trading venues.
As part of the rollout, OKX clients will gain access to tokenized assets minted by Franklin Templeton’s in-house blockchain division. Roger Bayston, head of digital assets at Franklin Templeton, highlighted the benefits of onchain MMFs, which allow for faster settlement without relying on traditional clearing infrastructure.
Standard Chartered said additional tokenized MMFs will be added over time, supporting broader collateral options for trading and financing in crypto markets.
Margaret Harwood-Jones, Standard Chartered’s global head of financing and securities services, said the collaboration will help institutional players operate with greater security and regulatory confidence. “This is a step toward building trusted infrastructure for tokenized assets,” she noted.
Brevan Howard’s compliance chief, Ryan Taylor, described the pilot as part of a growing institutional pivot into digital assets. “We’re committed to supporting global infrastructure development for crypto,” he said.
The program adds to a growing list of cross-industry collaborations between banks, asset managers, and crypto platforms as institutional interest in tokenized finance continues to build. It also comes as part of Standard Chartered’s broader strategy to expand its digital asset custody offerings globally. In September 2024, the bank introduced crypto custody services in the United Arab Emirates, providing institutional clients access to Bitcoin and Ether.
The British multinational bank joined an alliance of fintech firms and banks in 2021 to promote best practices in cryptocurrency, working alongside industry leaders like Coinbase, Huobi, and SIX Digital Exchange.
