OKX Expands Collateral Mirroring Program to european economic Area
OKX is bringing its collateral mirroring program with Standard Chartered to the european economic Area. This move aims to expand its services under the MiCA license.
The program allows institutional clients to store digital assets with Standard Chartered while mirroring their balances on OKX for trading. This service combines conventional finance with the crypto market, offering bank-grade custody and crypto trading access.
Initially launched in the UAE, the service now targets the European region. OKX’s team stated, “This expansion enables clients to trade and secure digital assets globally.” They added, “It’s a step towards a safer digital asset ecosystem in Europe.”
Margaret Harwood-Jones, Global Head at Standard chartered, noted the focus on leveraging existing custody infrastructure and regulatory frameworks for security and compliance.
The expansion aligns with the EU’s MiCA framework, which sets uniform rules for crypto asset service providers. The “collateral mirroring” mechanism reduces counterparty and custody risks by keeping assets in a regulated banking environment while tradable on a licensed platform.
Though, OKX faces regulatory scrutiny. Despite its MiCA license, it was fined €1.1 million in Malta and €2.25 million in the Netherlands for AML violations and unregistered services.
OKX must maintain a robust 1:1 mirroring system with real-time adjustments. Any mismatch could lead to under-collateralization or disputes. Strong operational resilience and auditability are essential for the program’s success.
