OKX has integrated BlackRock’s BUIDL tokenized U.S. Treasury fund into its institutional collateral framework in collaboration with Standard Chartered. This strategic move enables eligible institutional and VIP clients to utilize BUIDL as trading margin, providing a new avenue for capitalizing on real-world assets in the crypto space.
Clients can manage and hold this asset off-exchange with Standard Chartered while engaging in trading activities on OKX Middle East. An additional option allows clients to deposit BUIDL directly on the exchange, depending on their individual setups.
The partnership between OKX and Standard Chartered is being heralded as a G-SIB bank-backed off-exchange tokenized collateral framework, demonstrating a solid foundation for the use of tokenized assets in trading. This development builds upon OKX’s existing collateral mirroring program with Standard Chartered, emphasizing the integration of traditional financial practices with modern digital assets.
Rifad Mahasneh, CEO of OKX Middle East, North Africa, and CIS, highlighted the significance of this update, asserting that it showcases how tokenized assets can effectively support active trading rather than remaining dormant. He noted that BUIDL will be handled as fungible alongside USD, USDC, and other dollar-based stablecoins within OKX’s margin system. Clients will retain ownership of the fund and will also benefit from its yield.
Standard Chartered will serve as the off-exchange custodian for the collateral, ensuring that client assets are held separately from OKX’s own possessions. Meanwhile, OKX will oversee real-time margining and liquidation using its internal risk management systems. Although Mahasneh mentioned that the system adheres to traditional finance standards, specifics regarding stress-period margin calls were not disclosed.
The BUIDL fund is tokenized by Securitize and consists of investments in cash, U.S. Treasury bills, and repurchase agreements, with yield distributions conducted on-chain. This launch contributes to an expanding trend of utilizing tokenized real-world assets within crypto market frameworks. Notably, Binance has also incorporated tokenized Treasury products, including BUIDL and Franklin Templeton’s BENJI fund, into its collateral offerings.
The service is currently available for eligible institutional and VIP clients through OKX Middle East, with plans for future expansions based on jurisdictional considerations and client interest.
