OKX Teams Up with Standard Chartered for Crypto Collateral Solution
OKX, a leading crypto exchange, has teamed up with Standard Chartered to offer a new service for institutional clients.This partnership allows institutions to use crypto as collateral in a regulated manner.
On April 10, OKX launched a collateral mirroring programme. This initiative lets institutional clients keep their collateral with Standard Chartered, a trusted bank. OKX will then reflect this collateral in their accounts without holding the funds. This setup complies with Dubai’s VARA regulations.
Standard Chartered will act as the custodian, overseen by Dubai’s financial regulators. This ensures the safe storage of assets used as collateral. The program is a pilot, aiming to build trust among institutional clients.
there’s a growing demand for crypto trading among institutions. However, they often hesitate to trust crypto exchanges with their funds due to risks like hacking and bankruptcy. The FTX collapse is a prime example.
Regulations for crypto exchanges are usually less strict than those for banks. The collateral mirroring program addresses this by using a trusted, regulated entity like Standard Chartered.
Standard Chartered is a Globally Systemically Important Bank, subject to the strictest financial regulations. This ensures user funds are protected even if the bank faces financial issues.
