OKX lets institutions use BlackRock’s BUIDL fund as 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.

A key driver behind that shift is a simple inefficiency in how trading capital has traditionally worked. Cash posted as margin on crypto exchanges has typically sat idle, earning little or no yield while still being locked up as collateral. By converting that cash into a tokenized money market fund backed by US Treasuries and repurchase agreements, the structure allows institutions to keep their capital productive even while it is being used to support trading activity.

The framework builds on OKX’s existing collateral mirroring program with Standard Chartered, launched last year to support the exchange’s European expansion. What’s new, Rifad Mahasneh, CEO of OKX Middle East, North Africa and Commonwealth of Independent States, told Cointelegraph, is demonstrating how tokenized assets can be actively used within trading systems rather than held passively.

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BUIDL is treated as fungible with USD, USDC and other dollar-denominated stablecoins within OKX’s margin system, he said, while clients retain full ownership of the underlying asset and its yield.

OKX targets institutional edge in tokenized collateral

The move deepens OKX’s competition with exchanges like Binance, which has also integrated tokenized treasury products, including BlackRock’s BUIDL and Franklin Templeton’s BENJI fund, into off-exchange collateral frameworks.

OKX adds BlackRock’s tokenized Treasury fund to Standard Chartered custody program: Source: OKX

Mahasneh said the framework is now live for eligible institutional and VIP clients through OKX Middle East, with plans to expand based on jurisdiction and demand.

He described the setup as unique in combining regulated custody, a major asset manager and a G-SIB partner, adding that OKX is “the only global digital asset exchange” to establish this type of framework.

BlackRock’s BUIDL fund, tokenized by Securitize, invests in cash, US Treasury bills and repos, with yield distributed onchain, according to the release.

Standard Chartered serves as the off-exchange custodian, holding client collateral separately from OKX’s own assets while the exchange manages real-time margining and liquidation processes through its internal risk systems, Mahasneh said. He said the structure aligns with traditional finance standards, though he did not detail margin call procedures during market stress.

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