• Standard Chartered will provide a comprehensive and reliable asset custody solution by launching the first framework based on escrow assets represented as tokenized on-chain and held off-exchange, backed by a Global Systemically Important Bank (G-SIB).
• This initiative contributes to expanding the use of real-world assets (RWAs) represented as on-chain tokens, and opens up greater opportunities for market participation.

Dubai – OKX, a leading global fintech company and cryptocurrency exchange, today announced a joint framework with BlackRock and Standard Chartered Bank to integrate BUIDL, a BlackRock fund that invests in short-term US Treasury securities, into its collateral trading mechanisms. This marks a first, as a Global Systemically Important Bank (G-SIB) will act as the custodian in this operating model. The framework allows OKX clients to hold their collateral assets with the custodian in a regulated, off-exchange custody arrangement, while simultaneously using them as collateral to execute trades on the OKX platform itself, without needing to transfer the assets to the exchange.

Through this shared framework, OKX's VIP and corporate clients can allocate BUIDL as an off-exchange collateral (i.e., without physically depositing it on the exchange) under a regulated custody arrangement with Standard Chartered Bank, while continuing to trade seamlessly on the OKX Middle East platform, eliminating the need to transfer assets between different exchanges. In addition to this option, BUIDL can be deposited and traded directly on the exchange itself, and it can also be used as an automatically generating collateral for margin trading.

By combining BlackRock’s BUIDL fund token – represented as an on-chain token by Securitize (which announced a proposed merger with Cantor Equity Partners II, Inc., listed on Nasdaq under the symbol: CEPT) – and Standard Chartered Bank’s regulated custody services as a Global Systemically Important Bank (G-SIB), along with OKX’s infrastructure designed to execute corporate client trades and margin management, this framework offers a unique, integrated model in which custody and trading are executed within a single, fully coordinated financial system, representing a pivotal step towards establishing the representation of real assets as on-chain tokens within the global markets infrastructure.

This framework also offers the following advantages :

• Active capital: The ability to use BUIDL currency as an asset ensures that margin, which has always been classified as idle capital outside the circle of active investment, can be converted into an asset that generates returns.

• Universal escrow asset: OKX is expanding the use of real-world assets (RWAs) by establishing BUIDL as a fully platform-wide escrow asset.

• Enhanced protection: Thanks to the protection that BUIDL enjoys from Standard Chartered Bank, OKX clients receive escrow assets for trading that are separate from their assets deposited with OKX, while retaining the ability to use them for trading on the OKX platform without transferring custody (from the bank as custodian to the platform itself), thus providing clients with protection in the event of a failure of the trading platform.

This framework, bringing together the world’s largest asset manager, a Tier 1 global bank, and a leading digital asset trading platform, establishes a new model for expanding the practical applications of a comprehensive digital currency system. It combines the security of traditional finance with the efficiency of digital markets, thereby anchoring real-world asset representations (RWAs) as on-chain tokens at the heart of global market infrastructure.

“The BUIDL token is designed to offer the advantages of representing assets as on-chain tokens in the short-term Treasury securities investment space, enabling eligible investors to generate returns in US dollars through a blockchain-based infrastructure,” said Samara Cohen, Global Head of Market Development at BlackRock. She added, “This collaboration with OKX and Standard Chartered opens up new possibilities for eligible investors in how to leverage collateral assets to support their financial operations.”

Haider Rafiq, Global Managing Partner at OKX, said: “This collaboration highlights the significant potential of real-world asset representation (RWAs) as on-chain tokens on a wider scale. By enabling institutions to use BUIDL as an on-chain collateral asset via OKX’s global platform, we are improving capital efficiency and demonstrating how traditional financial instruments can seamlessly integrate into digital markets.” He added: “Representing real-world assets as on-chain tokens aims to make existing markets faster, more transparent, and more accessible.”

Margaret Harwood-Jones, Global Head of Finance and Securities Services at Standard Chartered, stated, “Our role as custodian in this initiative reflects our commitment to providing reliable and innovative solutions for clients as the integrated financial system evolves.” She added, “By providing secure custody of BUIDL assets within this escrow asset scenario, we are helping clients access opportunities in the digital asset world with the highest standards of protection and regulatory compliance. This collaboration demonstrates how traditional financial institutions and digital market infrastructure can work together to deliver tokenized assets to investors worldwide in a secure and efficient manner.”

The launch of this framework followed extensive testing and broad, enterprise-level technical integration. BlackRock’s BUIDL token is issued on a public blockchain and represents shares of a fund that invests its assets in cash, US Treasury bonds, and repurchase agreements, with returns distributed on-chain. Its seamless integration with OKX’s escrow asset framework demonstrates the potential for using real-world assets (RWAs) represented as tokens on a large scale within existing institutional operating structures for trading, margin management, and liquidity.

For more information, please contact us via:

Media@okx.com

About OKX

OKX is a fintech company whose mission is to modernize money systems and financial markets. Today, the company is trusted by over 100 million people worldwide who use OKX's services to invest, execute transactions, and trade digital assets across a range of financial instruments, including spot trading, futures, and decentralized markets. As one of the world's largest platforms, OKX is renowned for its trading platform, wallet, and integrated on-chain system, which are used by both individuals and large institutions.

OKX has regional offices in the United States, Europe, the United Arab Emirates, and Singapore, along with several local offices in São Paulo, Hong Kong, Turkey, and Australia. Over the years, it has successfully built one of the world's most comprehensive fintech companies in terms of regulatory compliance and licensing.

OKX is firmly committed to transparency and security, and publishes monthly Proof of Reserves reports to ensure that customer funds remain protected and accessible at all times. To learn more about OKX, please download the app or visit okx.com.

About OKX Solutions for the Enterprise Sector

Solutions are offered OKX provides the institutional sector with a secure infrastructure for digital asset markets, designed to meet the needs of institutional market participants. We offer access to highly liquid markets for spot trading and derivatives trading via operating order books on platforms of entities licensed in foreign countries and those subject to local regulatory oversight, along with the advantages of fast (over-the-counter) trading via Request for Quotations (RFQ), as well as a range of essential institutional services that cover the entire trading cycle.

From banks seeking to integrate digital currency products into their operations, to asset managers exploring allocation and investment opportunities, to trading firms expanding their derivatives strategies — we provide the flexible, regulated infrastructure that institutions need to compete confidently in digital asset markets.

BlackRock Company

BlackRock strives to help a growing number of people achieve financial well-being. As an investor trustee and fintech provider, we help millions build lifelong savings by making investing easier and more affordable. For more information about BlackRock, please visit www.blackrock.com/corporate.

Standard Chartered Bank

We are a leading international banking group with a direct presence in 54 of the world's most dynamic markets. Our aim is to drive business growth and prosperity, leveraging our unique diversity, and we reaffirm our commitment to our heritage and values, embodied in our brand promise: "Here for good."

Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.

For more experiences and expert opinions, please visit the "Analytical Insights and Opinions" section at sc.com. Follow Standard Chartered on X, LinkedIn, Instagram, and Facebook.

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