Crypto exchange OKX has integrated BlackRock’s BUIDL tokenized U.S. Treasury fund into its institutional collateral framework, allowing eligible institutional and VIP clients to use the yield‑bearing RWA as trading margin while it remains in off‑exchange custody at Standard Chartered. This creates what the firms describe as the first G‑SIB‑backed off‑exchange tokenized collateral framework, expanding the practical utility of tokenized real‑world assets beyond passive holding into live trading workflows. Under the new setup, clients can either keep their BUIDL tokens in regulated custody at Standard Chartered and have them mirrored to OKX’s margin system, or deposit BUIDL directly on the exchange. Within OKX’s margin engine, BUIDL is treated as interchangeable with USD, USDC and other dollar‑denominated stablecoins, meaning it can back derivatives and other trading positions while continuing to accrue yield for the holder. Standard Chartered, a globally systemically important bank (G‑SIB), holds client collateral segregated from OKX’s own assets, while OKX manages real‑time margining and liquidation, aligning the structure with traditional finance collateral standards. The move is positioned as a step toward embedding tokenized real‑world assets (RWA) into core market infrastructure rather than using them solely as static investment products. BlackRock’s BUIDL fund itself, tokenized by Securitize, invests in cash, U.S. Treasury bills and repurchase agreements, distributing yield on‑chain to token holders. By combining a major asset manager (BlackRock), a G‑SIB custodian bank (Standard Chartered) and a global crypto trading venue (OKX) in one framework, the initiative is aimed at increasing capital efficiency for institutions, addressing regulatory and custody concerns, and broadening institutional participation in tokenized RWAs. "entities":["OKX","BlackRock","BlackRock USD Institutional Digital Liquidity Fund (BUIDL)","Standard Chartered","Standard Chartered Bank","Securitize","OKX Middle East","Rifad Mahasneh","Cointelegraph","crypto.news","USDC","USD"]}Note: The content above is formatted as JSON as requested by the specified response` schema.

AI-generated background, compiled from web sources — not editorial content.

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