Standard Chartered (LON:STAN) announced on Tuesday the launch of a system
that allows institutional clients to use BlackRock's tokenized US Treasury bond fund as collateral on the OKX cryptocurrency trading platform.
The lender partnered with BlackRock (NYSE:BLK) and OKX to enable VIP and institutional clients of the trading platform to use BlackRock's USD Institutional Digital Liquidity (BUIDL) fund as collateral for trading on OKX Middle East.
Standard Chartered will act as a custodian for the OTC collateral, which the companies described as the first such system backed by a global systemically important bank.
This scheme is designed to reduce the need for clients to transfer assets between the custodian and the trading platform while maintaining off-exchange protection, the lender said.
BlackRock's tokenized fund invests in cash, U.S. Treasury bills, and repurchase agreements, with returns distributed on the blockchain.