OKX lets institutions use BlackRock’s BUIDL fund as trading collateral

OKX integrates BlackRock’s tokenized Treasury fund into Standard Chartered custody, allowing institutions to use it as regulated trading collateral.

Crypto trading platform OKX has added BlackRock’s BUIDL tokenized US Treasury fund to its collateral framework with Standard Chartered, allowing eligible institutional and VIP clients to use the yield-bearing asset as trading margin while holding it off-exchange with the bank.

The arrangement, announced in a Tuesday release shared with Cointelegraph, lets institutional and VIP clients post BUIDL as collateral held with Standard Chartered while trading on OKX Middle East, or deposit it directly on the exchange. The companies described it as the first globally systemically important (G-SIB) bank-backed off-exchange tokenized collateral framework.

It also adds to a broader industry push to turn tokenized real-world assets into working market infrastructure. By allowing a yield-bearing fund to be used as collateral while remaining in regulated custody, the framework shows how companies are trying to make tokenized cash-like assets more useful in day-to-day trading and risk management.

Read more