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 program. this initiative lets institutional clients keep their collateral with Standard Chartered,a trusted bank. OKX will then reflect this collateral in their accounts without taking custody of the funds. This setup complies with Dubai’s VARA regulations.
Standard Chartered will act as the custodian under Dubai’s financial regulations. This ensures the safe storage of assets used as collateral. The program is a pilot, aiming to meet the growing demand for crypto trading among institutions.
Institutions are wary of crypto exchanges due to risks like hacking and bankruptcy, as seen with FTX. This partnership addresses these concerns by leveraging Standard Chartered’s strict regulatory oversight.
Standard Chartered is a Globally Systemically Important Bank, meaning it follows some of the toughest financial regulations. This ensures user funds are protected even if the bank faces financial trouble.
With this move, OKX aims to build trust and attract more institutional clients to the crypto market. The partnership highlights the growing integration of traditional finance with the crypto world.
