OKX partners with Standard Chartered for crypto collateral mirroring program

OKX is associated with Standard Charterd to allow institutional customers to use the crypto as a guarantee in a regulated manner.

Okx (UN) Stimulates its offer for institutional customers. Thursday April 10, an Crypto exchange In partnership with Standard CharteredWith the support of Brevan Howard and Franklin Templeton, to launch a collateral mirror program.

This program will allow institutional customers to keep their warranty with Standard Charterd, rather than with OKX. The exchange will then “reflect” this guarantee in their accounts, without ever taking care of the funds.

The program was launched as a pilot, complying with the regulations of the Dubai virtual asset regulatory authority (known as Vara). Standard Charterd will serve as a guard as part of this framework, supervised by the financial regulators of Dubai.

“Standard Charterd acts as the independent and regulated goalkeeper of the Dubai International Financial Center (DIFC), regulated by the Dubai Financial Services Authority, guaranteeing the safe storage of assets used as guarantee”, OKX

Why Okx offers a standard charter guard

There is growing demand among cryptographic trading institutions. For example, the CME group reported a 73% increase In the daily average volume of its cryptographic term market. However, these institutional customers do not trust the exchanges of crypto with the custody of their funds.

For example, exchanges run a risk of hacking and bankruptcy, as in the case of Ftx. This, in turn, explains institutional customers at the risk of compensation, potentially resulting in billions of losses.

At the same time, regulations for crypto exchanges are generally less strict than those of banks or other financial institutions. For this reason, the collateral mirroring allows institutions to safeguard their funds with a trust of trust.

In addition, Standard Charterd is a global bank, which means that it is part of the most strict financial market regulations. User funds are separated from the bank’s assessment, ensuring that they are protected, even if the standard for -law quality disorders encounter financial difficulties.