- OKX and Standard Chartered partner to offer tokenized asset custody for trading.
- Franklin Templeton’s on-chain funds expand institutional crypto collateral options.
- Brevan Howard joins pilot using crypto and token funds under VARA regulatory oversight.
OKX announced a new institutional collateral mirroring program in partnership with Standard Chartered under Dubai’s VARA framework. The initiative enables qualified institutions to use tokenized funds and cryptocurrencies as trading collateral held by a regulated custodian.
OKX Shares Institutional Push for Off-Exchange Crypto Custody
As reported by OKX on X, the program supports institutional-grade crypto custody for off-exchange trading environments. OKX noted that initiatives like this reduce exposure to centralized exchange risk, particularly for fund managers and regulated entities. The announcement positions OKX and Standard Chartered at the forefront of hybrid finance infrastructure.
Brevan Howard Digital and Franklin Templeton were named as early participants in the program’s rollout phase, as confirmed by OKX Learn. Brevan Howard Digital, the crypto division of the global alternative asset manager, is reportedly onboarded to pilot the new custody standard. Franklin Templeton’s on-chain funds will expand tokenized collateral options for institutions entering crypto capital markets.
The Announcement Details Custody, Structure, and Strategic Objectives
The news release explained that OKX will manage mirrored collateral via its VARA-licensed entity, and Standard Chartered provides regulated custody. Institutions can now use tokenized money market funds and cryptocurrencies as capital-efficient trading collateral across environments. The strategy provides increased protection for customers through the segregation of assets under a globally systemically important bank (G-SIB).
OKX has announced that Franklin Templeton’s Digital Assets Team will be launching tokenized funds onto the platform’s on-chain infrastructure. These assets natively fit into financial workflows, scaling for institutional customers without the compromise of transparency. Custody remains within the Dubai International Financial Centre (DIFC) and is regulated by the Dubai Financial Services Authority.
Capital Efficiency, Onboarding, and Institutional Market Access
The platform architecture allows for real-time transaction management, full-chain transparency, and institutional-grade settlement protections. Brevan Howard Digital’s early involvement underscores market demand for regulated hybrid solutions enabling crypto deployment at scale. Standard Chartered’s global custody role introduces traditional safeguards to token-based collateral models.
Besides Brevan Howard, OKX expects other institutions to onboard in phases as regulatory comfort and token infrastructure adoption grow. Client assets remain fully segregated, auditable, and off-exchange under active regulatory supervision, according to the VARA framework and OKX Learn publication.
