New Pilot Programme Enables Institutions to Use Crypto as Collateral
Standard Chartered and cryptocurrency exchange OKX have launched a pilot programme allowing institutions to use crypto assets and tokenised money market funds (MMFs) as collateral. Announced on 10 April, the initiative aims to provide secure, off-exchange collateral usage with custody services handled by a globally systemically important bank.
The pilot operates under the regulatory framework of the Dubai Virtual Asset Regulatory Authority (VARA), with Standard Chartered acting as a regulated custodian in the Dubai International Financial Centre (DIFC).
Collaboration with Franklin Templeton and Brevan Howard
The initiative is being launched in partnership with asset manager Franklin Templeton, known for its openness to blockchain-based innovation. As part of the collaboration, OKX clients will gain access to on-chain assets developed by Franklin Templeton’s digital assets division.
Roger Bayston, Head of Digital Assets at Franklin Templeton, highlighted the benefits of onchain minting. “By ensuring assets are minted onchain, we enable true ownership, allowing them to move and settle at blockchain speed — eliminating the need for traditional infrastructure,” he said.
A visual of the crypto lending process with collaterals and deposits. Source: CoinRabbit
Brevan Howard Digital is among the first institutions participating in the trial, showcasing growing institutional interest in digital asset solutions.
Institutional Push for Crypto Collaterals
The use of crypto and tokenised assets as collateral is seen as a significant development for the institutional crypto sector. In the digital lending market, collateral plays a crucial role in securing loans and managing risks. The inclusion of tokenised MMFs alongside traditional crypto assets expands the scope of collateral options for borrowers.
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, said the initiative is a key step in institutional adoption. “Our collaboration with OKX to enable the use of cryptocurrencies and tokenised MMFs as collateral represents a significant step forward in providing institutional clients with the confidence and efficiency they need,” she noted. She also emphasised the importance of regulatory compliance and security in building trust within the digital asset ecosystem.
Growing Confidence in Tokenisation
The pilot programme also highlights the increasing role of tokenisation in modern finance. Tokenised MMFs allow for real-time settlement and greater transparency, with blockchain infrastructure enabling faster and more secure transactions.
Ryan Taylor, Group Head of Compliance at Brevan Howard, commented on the importance of the initiative in the broader context of crypto adoption. “As a significant investor in the digital assets space, we are thrilled to partner with industry leaders to further grow and evolve the crypto ecosystem globally,” he said.
With this move, Standard Chartered and OKX are positioning themselves at the forefront of institutional crypto innovation, providing a regulated and secure path for mainstream adoption of tokenised finance.
