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Innovative Cryptocurrency Exchange and Technology Company OKX Partners with Giants like Standard Chartered and Franklin Templeton for Blockchain-Based Institutional Finance Solutions

OKX, the innovative cryptocurrency exchange and technology company, has announced an important collaboration with Standard Chartered for a pioneering collateral mirroring program. The partnership, which also includes organizations such as Franklin Templeton and Brevan Howard Digital, will enable institutional clients to use cryptocurrencies and tokenized money market funds as off-exchange collateral.

According to a statement from OKX, Standard Chartered will act as an independent, regulated custodian within the Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority (DFSA). In this project, OKX, which holds a Virtual Asset Service Provider (VASP) license in Dubai, will assume the role of exchange where digital assets held as collateral can be used. It was noted that the first collateral products within the program will be money market funds operated by global fund manager Franklin Templeton, while Brevan Howard Digital, the crypto and digital asset arm of Brevan Howard, will be among the first institutional investors benefiting from the program.

Global Giants Unite

The pilot program launched by OKX in collaboration with the UK-based multinational bank and custodian Standard Chartered will also involve Franklin Templeton, one of the largest asset managers in the world. The collaboration, initiated as a pilot program within the regulatory framework of the Dubai Virtual Assets Regulatory Authority (VARA), will provide protection against counterparty risk, which is seen as a significant risk factor in current digital asset processes.

Sharing his thoughts on the matter, OKX TR Chairman Mehmet Çamır stated, "OKX continues to take steps to strengthen the intersection of traditional finance and blockchain in the markets where regulations allow. This project, launched in the United Arab Emirates, is one of the strong examples of interoperability between the two sectors and further solidifies the trust OKX has gained in global markets. As OKX TR, representing OKX’s global vision in Turkey, we are excited to bring similar innovations to life with the development of the regulatory framework in our country. Our collaborations with banks aimed at improving user experience are proof of our determination in this regard."

Cryptocurrencies and Tokenized Money Market Funds to Serve as Collateral

The pilot program, also known as OKX-SCB, allows institutional clients to use cryptocurrencies and tokenized money market funds as off-exchange collateral for trading. With Standard Chartered, which is listed among the Global Systemically Important Banks (G-SIBs), acting as the custodian, the project significantly enhances security and capital efficiency for institutional clients.

Mehmet Çamır, Chairman of OKX TR, mentioned that Franklin Templeton’s money market funds would be the first products available as collateral within the program. He added, "Through this collaboration, OKX’s institutional clients worldwide will gain access to on-chain assets developed by Franklin Templeton’s Digital Assets Team. OKX will work to ensure that these assets are seamlessly integrated into the clients’ financial and operational structures. This project, bringing together a multinational bank, a reputable global exchange, and leading asset managers, is one of the most up-to-date examples of the intersection of traditional finance and blockchain."

Setting the Industry Standard

Pointing out OKX’s position among global cryptocurrency exchanges, as well as its role in bridging the blockchain ecosystem, which has become mainstream, and traditional finance, Mehmet Çamır concluded: "This collaboration between Standard Chartered and OKX sets an industry standard for existing and potential institutional clients to trade capital on a large scale in a trusted environment. This innovative partnership between traditional finance and decentralized technologies further emphasizes OKX’s approach to offering advanced blockchain-based financial services. As OKX TR, one of OKX’s growth hubs since February 2024, we closely monitor legal regulations for crypto assets in our country, and we are eager to explore new use cases for blockchain technologies without compromising on the principle of 100% compliance."