OKX, BlackRock and Standard Chartered have launched a framework that allows eligible institutional clients to use BUIDL as collateral for trading.
The framework lets OKX VIP and institutional clients post BUIDL as off-exchange collateral held in custody at Standard Chartered while trading on OKX Middle East without moving assets onto the exchange.
BUIDL can also be deposited on-exchange and used as yield-bearing collateral for margin trading, keeping collateral productive while trading.
The companies describe it as the first off-exchange tokenised collateral framework backed by a G-SIB custodian.
BUIDL, tokenised by Securitize and issued on a public blockchain, invests in cash, US Treasury bills and repurchase agreements, with yield distributed on-chain.
Client collateral is held separately from OKX’s own assets, providing exchange default protection.
Bringing tokenised treasuries into trading infrastructure
Haider Rafique, Global Managing Partner at OKX, described the framework as a way to improve capital efficiency for institutions while showing how tokenised real-world assets can be used in digital markets.
Samara Cohen, Global Head of Market Development at BlackRock, said,
“BUIDL was designed to bring the benefits of tokenisation to short term treasury exposure, allowing qualified investors to earn US dollar yields on blockchain rails.
The framework with OKX and Standard Chartered allows qualified investors to unlock new opportunities in how they deploy collateral.”
Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, said,
“Our role as custodian in this initiative reflects our commitment to delivering trusted and innovative solutions for clients as the financial ecosystem evolves.
By providing secure custody of BUIDL for this collateral use case, we are helping to ensure clients can access digital asset opportunities with the high standards of protection and compliance.”
The framework follows extensive institutional testing and integration between the three companies.
It is intended to expand the use of tokenised real-world assets in institutional trading, margining and liquidity management.
Featured image: Edited by Fintech News Singapore, based on image by chocolarte via Magnific
