We've Launched a World-Leading Collateral Mirroring Programme With Standard Chartered

Today we announced that we've launched a ground-breaking, world-leading collateral mirroring programme with Standard Chartered Bank, enabling institutional clients to utilise cryptocurrencies and tokenized money market funds as off-exchange collateral for trading. This initiative significantly enhances security and capital efficiency for institutional clients by using a Globally Systemically Important Bank (G-SIB) as the custodian for their collateral.

The collateral mirroring capability has been launched as a Pilot within the Dubai Virtual Asset Regulatory Authority’s (VARA) regulatory framework, and it allows clients to benefit from enhanced protection against counterparty risk, a significant concern in the current digital asset markets. Standard Chartered acts as the independent, regulated custodian, ensuring the safe storage of the assets used as collateral, while we will manage collateral and facilitate transactions through our VARA regulated entity.

Brevan Howard Digital, the dedicated crypto and digital asset division of Brevan Howard, a leading global alternative investment manager, is among the first few institutions to onboard onto this pioneering programme, highlighting the importance of such capabilities being offered by a leading international cross-border bank and a highly reputable global exchange.

As the digital assets ecosystem becomes more ingrained within traditional finance, we continue to look for ways to both drive growth and safeguard client assets in the most capital efficient manner. By leveraging Standard Chartered's position as a top custodian globally, as well as our market leadership in cryptocurrency trading, the partnership sets an industry standard for current and potential institutional clients to deploy trading capital at scale in a trusted environment.