April 28 (Reuters) – Standard Chartered announced on Tuesday the launch of a new framework that permits institutional clients to use BlackRock’s tokenised short-term U.S. Treasury fund as collateral on the crypto trading platform OKX.
Here are some details:
• The lender has partnered with BlackRock and OKX to enable the trading platform’s VIP and institutional clients to use the BlackRock USD Institutional Digital Liquidity (BUIDL) Fund as collateral for trading activities on OKX Middle East.
• Standard Chartered will serve as custodian for the off-exchange collateral arrangement, which the companies described as the first such framework backed by a globally systemically important bank.
• The setup is designed to reduce the need for clients to transfer assets between a custodian and a trading venue, while maintaining protections outside the exchange, the lender said.
• BlackRock’s tokenised fund invests in cash, U.S. Treasury bills and repurchase agreements, with yield distributed on-chain.
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Vijay Kishore)
