Standard Chartered and OKX pilot crypto, money market fund collateral program

Standard Chartered and cryptocurrency speech OKX are piloting a caller programme allowing institutions to usage crypto assets and tokenized wealth marketplace funds (MMFs) arsenic collateral.

Announced connected April 10, the collateral mirroring programme enables off-exchange collateral usage portion enhancing information by placing custody with a globally systemically important bank, according to a associated connection from the companies.

The aviator has been launched nether the regulatory oversight of the Dubai Virtual Asset Regulatory Authority, with Standard Chartered acting arsenic a regulated custodian successful the Dubai International Financial Centre (DIFC).

The programme launched successful collaboration with crypto-friendly plus manager Franklin Templeton and features Brevan Howard Digital among the archetypal institutions to proceedings the caller capability.

OKX clients to summation entree to assets by Franklin Templeton

As portion of the collaboration, OKX clients volition person entree to onchain assets developed by Franklin Templeton’s integer assets team.

“We instrumentality an authentic approach, from straight investing successful blockchain assets to processing innovative solutions with our in-house team,” Franklin Templeton’s caput of integer assets, Roger Bayston, said, adding:

“By ensuring assets are minted onchain, we alteration existent ownership, allowing them to determination and settee astatine blockchain velocity — eliminating the request for accepted infrastructure.”

According to the announcement, Franklin Templeton volition beryllium 1 of the archetypal successful a “series of MMFs” that are expected to beryllium offered nether the programme by Standard Chartered and OKX.

Standard Chartered backs tokenized funds

In the crypto lending industry, collateral is immoderate blockchain-based plus utilized to unafraid loans from a lender arsenic a information measurement erstwhile taking retired a loan. By allowing borrowers to pledge those assets, the lender guarantees that the indebtedness is going to beryllium repaid.

Despite the precocious volatility of integer assets, Standard Chartered’s Margaret Harwood-Jones, planetary caput of financing and securities services, is bullish connected crypto collaterals arsenic a large measurement successful the improvement of organization crypto services.

A ocular of the crypto lending process with collaterals and deposits. Source: CoinRabbit

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“Our collaboration with OKX to alteration the usage of cryptocurrencies and tokenized MMFs arsenic collateral represents a important measurement guardant successful providing organization clients with the assurance and ratio they need,” Harwood-Jones said, adding:

“By leveraging our established custody infrastructure, we are ensuring the highest standards of information and regulatory compliance, fostering greater spot successful the integer plus ecosystem."

According to Ryan Taylor, radical caput of compliance astatine Brevan Howard, the programme is different illustration of the ongoing innovation and institutionalization successful the crypto industry.

“As a important capitalist successful the integer assets space, we are thrilled to spouse with manufacture leaders to further turn and germinate the crypto ecosystem globally,” helium noted.

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