Key Takeaways
- • BlackRock has launched its $2.5 billion tokenized money market fund, BUIDL, on crypto exchange OKX, enabling institutional and VIP clients to use the fund as yield-bearing collateral for margin trading.
- • Standard Chartered serves as the custodian for assets held under this arrangement, with clients able to post BUIDL as collateral while it remains in regulated off-exchange custody or deposit it directly on OKX Middle East.
- • The framework represents the first tokenized treasury collateral system backed by a globally systemically important bank, addressing the gap between idle trading capital and yield-generating instruments.
- • BUIDL, originally launched by BlackRock in 2024, has grown to $2.5 billion in assets and is treated as fungible with dollar-based stablecoins while allowing clients to retain ownership and yield benefits.
- • The partnership builds on Standard Chartered's existing institutional custodial role with OKX, expanded after securing regulatory approval in Luxembourg in 2025 under the EU's Markets in Crypto-Assets framework.
Summary
BlackRock has expanded its institutional crypto presence by integrating its $2.5 billion tokenized money market fund, BUIDL, into OKX's trading infrastructure. The fund, which holds short-term US Treasury securities and repurchase agreements, is now available to eligible institutional and VIP clients on OKX Middle East as collateral for margin trading. Standard Chartered provides secure custody of the assets, either held off-exchange or deposited directly on the platform, establishing what the companies describe as the first tokenized treasury collateral framework backed by a globally systemically important bank.
The arrangement addresses a structural inefficiency in crypto trading: cash posted as margin traditionally generates minimal or no yield. By tokenizing a money market fund backing the collateral, the framework allows institutions to earn yield on Treasury-linked instruments while simultaneously deploying capital for trading. Clients retain full ownership of the asset and its yield benefits while using BUIDL as fungible collateral equivalent to dollar-denominated stablecoins. This dual-use design makes tokenized real-world assets more practical for institutional trading and risk management workflows.
The partnership reflects Standard Chartered's deepening commitment to regulated digital asset custody. The bank secured Luxembourg-based regulatory approval in 2025 to offer institutional custodial services within the EU, coinciding with implementation of the Markets in Crypto-Assets framework. This custodial infrastructure now underpins the BUIDL integration with OKX. BUIDL itself, launched by BlackRock in 2024, has demonstrated institutional demand, growing from its inception to $2.5 billion in assets, signaling broader acceptance of tokenized Treasury products among qualified investors seeking yield-bearing alternatives in on-chain trading systems.
The arrangement addresses a structural inefficiency in crypto trading: cash posted as margin traditionally generates minimal or no yield. By tokenizing a money market fund backing the collateral, the framework allows institutions to earn yield on Treasury-linked instruments while simultaneously deploying capital for trading. Clients retain full ownership of the asset and its yield benefits while using BUIDL as fungible collateral equivalent to dollar-denominated stablecoins. This dual-use design makes tokenized real-world assets more practical for institutional trading and risk management workflows.
The partnership reflects Standard Chartered's deepening commitment to regulated digital asset custody. The bank secured Luxembourg-based regulatory approval in 2025 to offer institutional custodial services within the EU, coinciding with implementation of the Markets in Crypto-Assets framework. This custodial infrastructure now underpins the BUIDL integration with OKX. BUIDL itself, launched by BlackRock in 2024, has demonstrated institutional demand, growing from its inception to $2.5 billion in assets, signaling broader acceptance of tokenized Treasury products among qualified investors seeking yield-bearing alternatives in on-chain trading systems.
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