Crypto exchange OKX
has added BUIDL, a tokenized money market fund from BlackRock with about $2.5
billion in assets, to its collateral framework with Standard Chartered. The
setup allows eligible institutional and VIP clients to use it as trading margin
while it remains held off-exchange with the bank.
Singapore
Summit: Meet the largest APAC brokers you know (and those you still don’t!).
The move builds on an
existing partnership between the two firms. Last year, Standard
Chartered became an institutional custodian for OKX in the European
Economic Area after securing
regulatory approval in Luxembourg to offer digital asset custody services.
The step marked the bank’s entry into the European Union as the Markets in
Crypto-Assets framework began to take effect.
Rifad Mahasneh, CEO for OKX Middle East, North Africa and CIS
The companies said in
a release today (Tuesday) that clients can post BUIDL as collateral held with
Standard Chartered while trading on OKX Middle East, or deposit it directly on
the exchange . They described the setup as the first such framework backed by a
globally systemically important bank.
The arrangement
reflects an effort to make tokenized real-world assets usable in trading
infrastructure. It enables a yield-bearing fund to be used as collateral while
remaining in regulated custody, making such instruments more practical for
trading and risk management .
One issue the model
addresses is how trading capital is used. Cash posted as margin on crypto
exchanges typically earns little or no return. Converting it into a tokenized
money market fund backed by US Treasuries and repurchase agreements allows
institutions to retain yield while supporting trading activity.
Rifad Mahasneh, CEO for OKX Middle East,
North Africa and CIS, said BUIDL is treated as fungible with dollar-based
assets such as stablecoins, while clients “retain ownership of the asset and
its yield.”
BlackRock is bringing its roughly $2.5 billion money market fund to cryptocurrency exchange operator OKX https://t.co/DqRmNTU4NH
— Bloomberg (@business) April 28, 2026
Tokenized Treasury Collateral
Competition Grows
The move adds to
competition among exchanges. Binance has introduced similar integrations of
tokenized treasury products, including funds from BlackRock and Franklin
Templeton, into off-exchange collateral frameworks.
The BUIDL fund,
tokenized by Securitize, invests in cash, US Treasury bills and repurchase
agreements, with yield distributed onchain.
Standard Chartered
acts as the off-exchange custodian, holding client collateral separately from
the exchange’s own assets, while OKX manages margining and liquidation through
its internal risk systems. Mahasneh said the structure aligns with traditional
finance standards but did not detail margin calls during periods of market
stress.
Crypto exchange OKX
has added BUIDL, a tokenized money market fund from BlackRock with about $2.5
billion in assets, to its collateral framework with Standard Chartered. The
setup allows eligible institutional and VIP clients to use it as trading margin
while it remains held off-exchange with the bank.
Singapore
Summit: Meet the largest APAC brokers you know (and those you still don’t!).
The move builds on an
existing partnership between the two firms. Last year, Standard
Chartered became an institutional custodian for OKX in the European
Economic Area after securing
regulatory approval in Luxembourg to offer digital asset custody services.
The step marked the bank’s entry into the European Union as the Markets in
Crypto-Assets framework began to take effect.
Rifad Mahasneh, CEO for OKX Middle East, North Africa and CIS
The companies said in
a release today (Tuesday) that clients can post BUIDL as collateral held with
Standard Chartered while trading on OKX Middle East, or deposit it directly on
the exchange . They described the setup as the first such framework backed by a
globally systemically important bank.
The arrangement
reflects an effort to make tokenized real-world assets usable in trading
infrastructure. It enables a yield-bearing fund to be used as collateral while
remaining in regulated custody, making such instruments more practical for
trading and risk management .
One issue the model
addresses is how trading capital is used. Cash posted as margin on crypto
exchanges typically earns little or no return. Converting it into a tokenized
money market fund backed by US Treasuries and repurchase agreements allows
institutions to retain yield while supporting trading activity.
Rifad Mahasneh, CEO for OKX Middle East,
North Africa and CIS, said BUIDL is treated as fungible with dollar-based
assets such as stablecoins, while clients “retain ownership of the asset and
its yield.”
BlackRock is bringing its roughly $2.5 billion money market fund to cryptocurrency exchange operator OKX https://t.co/DqRmNTU4NH
— Bloomberg (@business) April 28, 2026
Tokenized Treasury Collateral
Competition Grows
The move adds to
competition among exchanges. Binance has introduced similar integrations of
tokenized treasury products, including funds from BlackRock and Franklin
Templeton, into off-exchange collateral frameworks.
The BUIDL fund,
tokenized by Securitize, invests in cash, US Treasury bills and repurchase
agreements, with yield distributed onchain.
Standard Chartered
acts as the off-exchange custodian, holding client collateral separately from
the exchange’s own assets, while OKX manages margining and liquidation through
its internal risk systems. Mahasneh said the structure aligns with traditional
finance standards but did not detail margin calls during periods of market
stress.
