A new pilot platform by Standard Chartered, OKX, and Franklin Templeton aims to bring institutional-level collateral trading to the crypto space by enabling off-exchange transactions using digital assets and tokenized money market funds.
The initiative is designed to serve institutional clients, integrating blockchain-native assets with traditional trading infrastructure while ensuring regulatory compliance, capital efficiency, and asset protection.
Native On-Chain Assets and Instant Settlement
Franklin Templeton’s Digital Assets division will contribute tokenized assets minted directly on-chain. These can then be used by OKX clients for collateral in trading and risk management workflows.
Roger Bayston, head of digital assets at Franklin Templeton, emphasized that on-chain issuance allows:
- True ownership
- Near-instant settlement
- Elimination of dependency on traditional infrastructure
- Brevan Howard Joins as First Pilot Participant
Brevan Howard Digital, a division of the global hedge fund Brevan Howard, is one of the first participants in the pilot.
“This pilot reflects the growing institutionalization of digital assets,” said Ryan Taylor, Brevan Howard Digital’s Chief Administrative Officer. “It shows that scalable, compliant infrastructure is now becoming available for real institutional use.”
Operating Under Dubai’s VARA Regulatory Framework
The pilot runs under the Dubai Virtual Asset Regulatory Authority (VARA) guidelines and involves multiple layers of compliance:
Standard Chartered will serve as the independent custodian via its DIFC-regulated entity (under Dubai Financial Services Authority).
OKX, through its own VARA-regulated entity, will handle collateral management and transaction execution.
The structure is designed to allow participants to mirror collateral off-exchange, offering greater flexibility and reducing counterparty risk.
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Source: https://coindoo.com/standard-chartered-okx-franklin-templeton-launch-crypto-collateral-trading-pilot/