Standard Chartered said on Tuesday it has launched a new framework allowing institutional clients to use BlackRock’s tokenised short-term US Treasury fund as collateral on the crypto trading platform OKX.
The lender has partnered with BlackRock and OKX to enable VIP and institutional clients on OKX Middle East to use the BlackRock USD Institutional Digital Liquidity (BUIDL) Fund for trading-related collateral.
Standard Chartered will act as the custodian for the off-exchange collateral arrangement.
The companies described the initiative as the first such framework backed by a globally systemically important bank.
Off-exchange custody to reduce asset transfers
The framework is designed to reduce the need for clients to move assets between custodians and trading venues.
At the same time, it ensures asset protection outside the exchange environment, the lender said.
Through this setup, institutional clients can post BUIDL as collateral held off-exchange under Standard Chartered’s regulated custody, while continuing to trade seamlessly on OKX Middle East.
This eliminates the need to transfer assets across platforms.
The arrangement also allows BUIDL to be deposited and traded on-exchange. It can be used as yield-bearing collateral for margin trading activities.
Tokenisation integrated into trading workflows
The framework combines BlackRock’s BUIDL fund, tokenised by Securitize, with Standard Chartered’s custody services and OKX’s trading infrastructure.
It creates a model where collateral custody and trading operate within a single ecosystem.
This marks a step toward integrating tokenised real-world assets into global financial market infrastructure.
BlackRock’s BUIDL fund invests in cash, US Treasury bills, and repurchase agreements.
The yield from these investments is distributed on-chain.
The framework aims to turn idle margin into a yield-generating asset.
It also expands the use of tokenised real-world assets by enabling BUIDL to function as platform-wide collateral on OKX.
Focus on protection and capital efficiency
The companies said the structure offers enhanced protection for clients.
Collateral held in BUIDL is safeguarded by Standard Chartered and remains segregated from OKX’s assets.
This allows clients to trade without transferring custody, reducing exposure to exchange-related risks.
Samara Cohen, Global Head of Market Development at BlackRock, said, “BUIDL was designed to bring the benefits of tokenization to short term treasury exposure, allowing qualified investors to earn US dollar yields on blockchain rail.”
She added, “The framework with OKX and Standard Chartered allows qualified investors to unlock new opportunities in how they deploy collateral.”
Haider Rafique, Global Managing Partner at OKX, said, “This collaboration highlights the potential of tokenizing real-world assets (RWA) at scale.”
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, said, “Our role as custodian in this initiative reflects our commitment to delivering trusted and innovative solutions for clients as the financial ecosystem evolves.”
Institutional adoption and testing
The launch follows extensive institutional testing and integration efforts.
The companies said the framework demonstrates that tokenised real-world assets can operate at scale within existing institutional workflows, including trading, margining, and liquidity management.
The initiative brings together a global asset manager, a Tier 1 bank, and a digital asset exchange.
It aims to bridge traditional finance and digital markets by embedding tokenisation into core financial infrastructure.
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