Standard Chartered, BlackRock Launch Collateral Framework for Tokenised Treasury Fund
Overview of the New Collateral Framework Collaboration
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.
Key Details of the Partnership
Here are some details:
Enabling Institutional Trading with Tokenised Funds
• 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.
Custodial Arrangements and Security
• 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.
Operational Efficiency and Asset Protection
• 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.
Investment Strategy of BlackRock’s Tokenised Fund
• BlackRock's tokenised fund invests in cash, U.S. Treasury bills and repurchase agreements, with yield distributed on-chain.
Reporting and Editorial Credits
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Vijay Kishore)
