Institutional Blockchain Collaboration: Standard Chartered, OKX, and Franklin Templeton Launch Collateral Mirroring Program
Standard Chartered, OKX, and Franklin Templeton have launched a pilot trading platform designed to enable institutional clients to use crypto and tokenized money market funds as collateral in off-exchange transactions. According to an April 10 release, the platform utilizes tokenized on-chain assets provided by Franklin Templeton’s Digital Assets division, which can be integrated into trading and risk management workflows by OKX clients.
Franklin Templeton’s Digital Assets Division
Franklin Templeton’s head of digital assets, Roger Bayston, emphasized the importance of native blockchain integration in the platform. Bayston noted that minting assets on-chain enables true ownership and near-instantaneous settlement, removing reliance on traditional infrastructure and aligning operational speed with blockchain-based systems.
Brevan Howard Onboarded
The framework is intended to allow institutions to mirror collateral held securely with a third party while maintaining operational flexibility for trading. Brevan Howard Digital, a division of the global alternative investment manager Brevan Howard, is one of the first firms to participate in the pilot. Brevan Howard Digital’s chief administrative officer, Ryan Taylor, said that the program reflects the continued institutionalization of the digital asset sector and the increasing availability of compliant infrastructure for large-scale participation.
Program Structure and Partnerships
The program operates within the Dubai Virtual Asset Regulatory Authority (VARA) framework. It aims to provide capital efficiency and enhanced asset protection through custody arrangements with a globally systemically important bank (G-SIB). Under the pilot structure, Standard Chartered will act as the independent custodian through its Dubai International Financial Centre (DIFC) entity, which the Dubai Financial Services Authority regulates. Meanwhile, OKX, operating through its VARA-regulated entity, will manage the collateral and facilitate transaction execution.
Addressing Institutional Demand
According to Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, the initiative leverages the bank’s established custody infrastructure to provide a secure mechanism for holding digital collateral. She added that the collaboration addresses institutional demand for trusted digital asset custody and supports the safe use of blockchain-based products in trading environments. OKX President Hong Fang noted that the program is a framework for deploying trading capital in a secure, capital-efficient manner. Fang added that OKX’s infrastructure, combined with Standard Chartered’s custody services, creates a regulatory-grade environment suitable for institutional participants.
Institutional Collaboration and Adoption
The initiative seeks to facilitate the broader adoption of tokenized instruments in institutional trading by enabling institutions to post digital assets as collateral while maintaining regulatory safeguards and custodial segregation. This collaboration between Standard Chartered, OKX, and Franklin Templeton highlights the growing trend of institutional adoption in the digital asset space.
Conclusion
The pilot program launched by Standard Chartered, OKX, and Franklin Templeton marks a significant step towards the institutionalization of digital assets. By providing a secure and compliant framework for trading and custody, the program addresses longstanding industry concerns and enables the broader adoption of tokenized instruments.
FAQs
- What is the goal of the pilot trading platform launched by Standard Chartered, OKX, and Franklin Templeton?
The goal of the pilot program is to enable institutional clients to use crypto and tokenized money market funds as collateral in off-exchange transactions.
- What type of assets will be provided by Franklin Templeton’s Digital Assets division?
Franklin Templeton’s Digital Assets division will contribute tokenized on-chain assets, which can be integrated into trading and risk management workflows by OKX clients.
- Which firms are participating in the pilot program?
Brevan Howard Digital is one of the first firms to participate in the pilot, along with Standard Chartered and OKX.
- How does the program operate within the Dubai Virtual Asset Regulatory Authority (VARA) framework?
The program operates within the VARA framework, aiming to provide capital efficiency and enhanced asset protection through custody arrangements with a globally systemically important bank (G-SIB).
- What is the role of Standard Chartered in the pilot program?
Standard Chartered will act as the independent custodian through its Dubai International Financial Centre (DIFC) entity, which the Dubai Financial Services Authority regulates.
- What is the role of OKX in the pilot program?
OKX, operating through its VARA-regulated entity, will manage the collateral and facilitate transaction execution.
- What is the significance of native blockchain integration in the platform?
Native blockchain integration enables true ownership and near-instantaneous settlement, removing reliance on traditional infrastructure and aligning operational speed with blockchain-based systems.
