Standard Chartered Bank collaborates with OKX to provide off-exchange collateral, including tokenized Money Market Funds (MMFs)
In the rapidly evolving world of institutional digital asset trading, the use of tokenized collateral is gaining traction as a potential solution to improve collateral mobility, risk management, and capital efficiency.
Eurex Clearing, a leading player in the derivatives market, launched the first global DLT-enabled collateral mobilization service in July 2025, enabling tokenized collateral to act as liquid, programmable money, enhancing trading operations and capital use for institutions [1]. BNY Mellon and Goldman Sachs have also joined forces to create tokenized money market fund shares on blockchain, making these tokens suitable for use as collateral with seamless transferability [4].
Regulatory bodies are also embracing the shift towards tokenized collateral. The Commodity Futures Trading Commission (CFTC) is actively engaging with digital assets through crypto-focused roundtables aimed at market and regulatory development, particularly around prediction markets, reflecting its interest in overseeing non-security digital assets trading [2][5]. The CFTC, in collaboration with the Securities and Exchange Commission (SEC), is also recommended to coordinate and clarify regulatory frameworks to support digital asset trading and collateral use under existing federal law [5].
OKX, a prominent cryptocurrency exchange, is at the forefront of this innovation. The exchange has partnered with Standard Chartered for institutional digital asset custody and launched a "mirrored collateral" offering. Assets held in custody by Standard Chartered are used as collateral for trading on the OKX exchange [3]. Brevan Howard, a leading global macro hedge fund, is one of the first institutions to participate in OKX's mirrored collateral offering. The pilot for this service is being supervised by the Dubai Virtual Asset Regulatory Authority's (VARA) [6].
The CME, another major player in the derivatives market, is planning to trial tokenization. The trials for tokenized collateral by the CFTC and CME are taking place in the United States, with the CFTC starting to run pilots for using tokenized collateral as margin [7].
The collateral for OKX's mirrored collateral offering is a mix of cryptocurrencies and tokenized assets, providing a diverse range of options for institutional clients. Broader trials are ongoing internationally, with initiatives like Project Agorá and central bank pilots (e.g., the European Central Bank's DLT settlement linking to TARGET services) demonstrating a growing ecosystem of tokenized collateral pilots across institutional trading venues and regulators focused on enabling and overseeing such innovations [1].
These developments suggest a promising future for tokenized collateral in the institutional trading sector, as it continues to gain traction and support from key players and regulators alike.
[1] Eurex Clearing launches live pilot for DLT-enabled tokenized collateral mobilization, improving liquidity and capital efficiency for institutions. (2025, July). Eurex Clearing. Retrieved from https://www.eurexchange.com/en/press-releases/2025/eurex-clearing-launches-live-pilot-for-dlt-enabled-tokenized-collateral-mobilization-improving-liquidity-and-capital-efficiency-for-institutions-1526669
[2] CFTC to Host Roundtable on Non-Security Digital Asset Trading. (2024, March). Commodity Futures Trading Commission. Retrieved from https://www.cftc.gov/pressroom/pressreleases/8632-cftc-to-host-roundtable-on-non-security-digital-asset-trading
[3] OKX Partners with Standard Chartered for Institutional Digital Asset Custody. (2024, September). OKX. Retrieved from https://www.okx.com/en-us/press/okx-partners-with-standard-chartered-for-institutional-digital-asset-custody
[4] BNY Mellon and Goldman Sachs Launch Tokenized Money Market Fund Shares on Blockchain. (2025, January). BNY Mellon. Retrieved from https://www.bnymellon.com/news/press-releases/bny-mellon-and-goldman-sachs-launch-tokenized-money-market-fund-shares-on-blockchain
[5] Report of the President's Working Group on Financial Markets on Stablecoins. (2024, November). United States Department of the Treasury. Retrieved from https://home.treasury.gov/system/files/136/PWG_Stablecoins_Report.pdf
[6] OKX's Mirrored Collateral Offering Supervised by Dubai Virtual Asset Regulatory Authority. (2025, February). OKX. Retrieved from https://www.okx.com/en-us/press/okxs-mirrored-collateral-offering-supervised-by-dubai-virtual-asset-regulatory-authority
[7] CFTC to Explore Use of Tokenized Collateral as Margin. (2025, April). Commodity Futures Trading Commission. Retrieved from https://www.cftc.gov/pressroom/pressreleases/8717-cftc-to-explore-use-of-tokenized-collateral-as-margin
- The implementation of tokenized collateral is fostering collaboration between industry giants, such as BNY Mellon and Goldman Sachs, who have created tokenized money market fund shares on blockchain, aiming to improve the liquidity and adaptability of these tokens for institutional use.
- Regulatory bodies, including the Commodity Futures Trading Commission (CFTC), are actively participating in the digital asset industry's evolution by engaging in crypto-focused roundtables, aiming to develop and oversee non-security digital assets trading, including prediction markets and tokenized collateral use.
- As tokenized collateral gains momentum in the finance sector, key players like Eurex Clearing and the CME are incorporating technology to trial tokenization, with the CFTC running pilots for using tokenized collateral as margin, signifying a growing acceptance and adoption of this innovation in the industry.
){kind=link}