OKX, a leading global fintech company and crypto trading platform, has announced the launch of a joint framework with BlackRock and Standard Chartered to integrate BlackRock’s BUIDL tokenised short-term treasury fund into collateral workflows, marking the first time a globally systemically important bank (G-SIB) has acted as custodian in such an arrangement.
The framework enables OKX clients to hold collateral in regulated, off exchange custody while trading on the same integrated venue.
Through this joint framework OKX VIP and institutional clients can post BUIDL as collateral held off-exchange in regulated custody at Standard Chartered, while trading seamlessly on OKX Middle East, eliminating the need to move assets between venues.
In addition, BUIDL can be deposited and traded on-exchange, and used as yield-bearing collateral for margin trading.
This framework unites BlackRock’s BUIDL - tokenized by Securitize (which has announced a proposed business combination with Cantor Equity Partners II, Inc. (Nasdaq: CEPT))- Standard Chartered's regulated custody as a G-SIB, and OKX’s institutional execution and margining infrastructure.
This framework delivers a uniquely integrated model where collateral custody and trading occur within a single, coordinated ecosystem, representing a key advancement toward embedding tokenization into global market infrastructure.
The framework also delivers:
• Capital at work: The ability to use BUIDL as collateral transforms idle margin into a yield-generating asset.
• Universal collateral: OKX is expanding the utility of Real-World Assets by establishing BUIDL as a platform-wide collateral.
• Superior protection: With BUIDL safeguarded by Standard Chartered, OKX clients obtain trading collateral segregated from OKX’s assets, while retaining the ability to trade on OKX without transferring custody, providing clients with exchange default protection.
This framework, which involves the participation of the world's largest asset manager, a Tier 1 Global Bank, and a premier digital asset exchange, establishes a new utility framework for the cryptocurrency ecosystem. It integrates traditional financial (TradFi) security with the agility of digital markets, embedding RWA tokenization into the core of global market infrastructure.
"BUIDL was designed to bring the benefits of tokenization to short term treasury exposure, allowing qualified investors to earn US dollar yields on blockchain rails," said Samara Cohen, Global Head of Market Development at BlackRock.
"The framework with OKX and Standard Chartered allows qualified investors to unlock new opportunities in how they deploy collateral," he added.
"This collaboration highlights the potential of tokenizing real-world assets (RWA) at scale. By enabling institutions to deploy BUIDL as on-chain collateral on OKX’s global platform, we improve capital efficiency while demonstrating how traditional financial instruments can operate seamlessly in digital markets," said Haider Rafique, Global Managing Partner at OKX. "Tokenization is about making existing markets faster, more transparent, and more accessible."
"Our role as custodian in this initiative reflects our commitment to delivering trusted and innovative solutions for clients as the financial ecosystem evolves," said Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered.
"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. This framework demonstrates how traditional financial institutions and digital market infrastructure can work together to bring tokenized assets safely and efficiently to global investors."
The launch follows extensive institutional testing and integration. BlackRock's BUIDL is issued on a public blockchain and invests in cash, US Treasury bills, and repurchase agreements, with yield distributed on-chain. Its integration into OKX’s collateral framework demonstrates that tokenized RWAs can operate at scale within existing institutional workflows for trading, margining, and liquidity management.-TradeArabia News Service