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Standard Chartered and cryptocurrency exchange OKX are piloting a new program allowing institutions to use crypto assets and tokenized money market funds (MMFs) as collateral.<\/p>\n
Announced<\/a> on April 10, the collateral mirroring program enables off-exchange collateral usage while enhancing security by placing custody with a globally systemically important bank, according to a joint statement from the companies.<\/p>\n The pilot has been launched under the regulatory oversight of the Dubai Virtual Asset Regulatory Authority<\/a>, with Standard Chartered acting as a regulated custodian in the Dubai International Financial Centre (DIFC).<\/p>\n The program launched in collaboration with crypto-friendly asset manager Franklin Templeton<\/a> and features Brevan Howard Digital<\/a> among the first institutions to trial the new capability.<\/p>\n As part of the collaboration, OKX clients will have access to onchain assets developed by Franklin Templeton\u2019s digital assets team.<\/p>\n \u201cWe take an authentic approach, from directly investing in blockchain assets to developing innovative solutions with our in-house team,\u201d Franklin Templeton\u2019s head of digital assets, Roger Bayston, said, adding:<\/p>\n \u201cBy ensuring assets are minted onchain, we enable true ownership, allowing them to move and settle at blockchain speed \u2014 eliminating the need for traditional infrastructure.\u201d<\/p><\/blockquote>\n According to the announcement, Franklin Templeton will be one of the first in a \u201cseries of MMFs\u201d that are expected to be offered under the program by Standard Chartered and OKX.<\/p>\n In the crypto lending industry<\/a>, collateral is any blockchain-based asset used to secure loans from a lender as a security measure when taking out a loan. By allowing borrowers to pledge those assets, the lender guarantees that the loan is going to be repaid.<\/p>\n Despite the high volatility of digital assets, Standard Chartered\u2019s Margaret Harwood-Jones, global head of financing and securities services, is bullish on crypto collaterals as a major step in the evolution of institutional crypto services.<\/p>\n A visual of the crypto lending process with collaterals and deposits. Source: CoinRabbit<\/em><\/p>\n<\/figcaption><\/figure>\nOKX clients to gain access to assets by Franklin Templeton<\/h2>\n
Standard Chartered backs tokenized funds<\/h2>\n