Introduction#
Standard Chartered has announced a new framework that allows institutional clients to use BlackRock’s tokenized short-term U.S. Treasury fund as collateral on the crypto trading platform OKX. This initiative aims to streamline trading for clients while enhancing security.
Collaboration with BlackRock and OKX#
In partnership with BlackRock and OKX, Standard Chartered will enable VIP and institutional clients to utilize the BlackRock USD Institutional Digital Liquidity (BUIDL) Fund as collateral for their trading activities on OKX Middle East. This collaboration marks a significant step in integrating traditional finance with the cryptocurrency world.
Role of Standard Chartered#
Standard Chartered will act as the custodian for this off-exchange collateral arrangement. This means they will hold and manage the collateral assets securely, ensuring that clients do not need to move their assets between a custodian and a trading platform. This setup is notable as it is the first of its kind backed by a globally systemically important bank, which adds a layer of trust and reliability.
Benefits of the New Framework#
The new framework is designed to reduce operational complexities for clients. By allowing the use of the tokenized fund as collateral, it minimizes the need for asset transfers, thereby maintaining protections outside the exchange. BlackRock’s tokenized fund invests in cash, U.S. Treasury bills, and repurchase agreements, with yields distributed on-chain, providing a modern approach to asset management in the digital space.