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In a strategic move to enhance trust, transparency, and capital efficiency in digital asset markets, Standard Chartered has partnered with global crypto exchange OKX to pilot a collateral mirroring programme for institutional clients. The initiative allows the use of cryptocurrencies and tokenised money market funds as off-exchange collateral, underpinned by robust regulatory oversight and compliance mechanisms.
The innovative programme is being piloted under the regulatory framework of the Dubai Virtual Asset Regulatory Authority (VARA), a jurisdiction known for its progressive approach to digital assets. This framework offers participating institutions heightened protection against counterparty risk—an increasingly critical consideration in today’s volatile crypto markets.
Standard Chartered, designated as a Globally Systemically Important Bank (G-SIB), serves as the independent and regulated custodian for the assets, ensuring secure storage and compliance with regulatory requirements. OKX, operating through its VARA-regulated entity, manages collateral execution and transaction facilitation.
This initiative marks a significant milestone in RegTech innovation, as it introduces a new standard for regulatory compliance, financial crime prevention, and risk mitigation in crypto trading. The framework strengthens governance and builds investor confidence, particularly among institutional participants seeking secure, regulation-friendly trading environments.
“We understand the critical importance of robust and secure custody solutions in the evolving digital asset space,” said Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered. “Our collaboration with OKX empowers institutional clients with greater efficiency and compliance assurance, leveraging our established custody infrastructure to ensure regulatory enforcement and protection.”
Notably, Franklin Templeton will be the first of several tokenised money market funds available within the OKX-Standard Chartered programme. Brevan Howard’s dedicated crypto and digital asset division is among the first institutional clients to onboard, highlighting early traction from global financial leaders.
Hong Fang, President of OKX, added: “By combining Standard Chartered’s global custodial strength with OKX’s crypto trading expertise, we are setting a regulatory benchmark for institutions to deploy trading capital securely and at scale.”
This development comes in the wake of OKX operator Aux Cayes Fintech’s $504 million penalty for violating U.S. anti-money laundering regulations earlier this year—an incident that has reinforced the industry’s urgency for AML software, compliance monitoring tools, and regulatory reporting software. The new programme signals OKX’s push to rebuild trust and adhere to global compliance standards.
By anchoring its pilot in a regulated jurisdiction and involving a globally recognized custodian, the collateral mirroring programme represents a blueprint for the future of RegTech-driven trading ecosystems—where compliance, internal controls, and regulatory risk management are foundational.
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