Standard Chartered, OKX roll out crypto collateral pilot in Dubai
Banking giant Standard Chartered and global crypto exchange OKX have launched a pilot programme in Dubai that could reshape how institutional investors trade digital assets.
The new collateral mirroring programme allows institutions to use cryptocurrencies and tokenised money market funds as collateral for trading, without moving those assets onto an exchange. This reduces counterparty risk, a major concern in the crypto world, and enhances capital efficiency for large investors.
It's the first such initiative to bring together a major global bank, a regulated crypto platform and a traditional asset manager to support secure crypto trading for institutions.
The pilot is being rolled out under the regulatory oversight of Dubai's Virtual Asset Regulatory Authority (VARA), making it one of the most prominent real-world implementations of regulated digital finance in the region.
Hong Fang, president of OKX, summed it up:'As the digital assets ecosystem becomes more ingrained within traditional finance, we strive 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 OKX's 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.'
Using crypto as collateral
Under the programme, Standard Chartered acts as the regulated custodian. The bank holds the collateral securely in the Dubai International Financial Centre (DIFC), while OKX facilitates trading activity through its VARA-regulated entity.
Speaking about the launch, Margaret Harwood-Jones, global head of financing and securities services at Standard Chartered, said: 'We understand the critical importance of robust and secure custody solutions, especially in the evolving digital asset landscape, and our collaboration with OKX to enable the use of cryptocurrencies and tokenised money market funds as collateral represents a significant step forward in providing institutional clients with the confidence and efficiency they need.'
She added that the bank is 'ensuring the highest standards of security and regulatory compliance, fostering greater trust in the digital asset ecosystem.'
Backed by Franklin Templeton, Brevan Howard Digital
One of the major components of the pilot is the inclusion of tokenised money market funds provided by Franklin Templeton, a traditional asset management giant with $1.58tn in assets under management.
Roger Bayston, head of digital assets at Franklin Templeton, said: 'By ensuring assets are minted on-chain, we enable true ownership, allowing them to move and settle at blockchain speed – eliminating the need for traditional infrastructure.'
This effectively turns traditional, low-risk financial products such as money market funds into on-chain assets that can be integrated into digital finance workflows.
Also onboard is Brevan Howard Digital, the crypto arm of the global hedge fund. The firm is among the first institutional players to participate.
Ryan Taylor, group head of compliance at Brevan Howard and CAO of Brevan Howard Digital, said:
'This programme is the latest example of the continued innovation and institutionalisation of the industry. As a significant investor in the digital assets space, we are thrilled to partner with industry leaders to further grow and evolve the crypto ecosystem globally.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
a day ago
- Arabian Post
Singapore Accelerates Growth in Tokenized Finance
Singapore has firmly established itself at the forefront of global digital finance innovation, particularly in the realm of tokenized assets. The city-state's embrace of blockchain technology is reshaping the investment landscape, enabling quicker, more accessible, and transparent transactions. As financial institutions, startups, and regulatory bodies collaborate, Singapore is positioning itself as a pivotal player in the tokenization of assets. Tokenization, the process of converting assets into digital tokens on a blockchain, has garnered significant attention for its potential to revolutionize various sectors, from real estate to commodities. In Singapore, tokenized finance is progressing from pilot projects to full-scale adoption, driving the country's financial ecosystem towards greater efficiency and market accessibility. One of the main driving forces behind Singapore's success in this area is its robust regulatory framework. The Monetary Authority of Singapore has been instrumental in fostering innovation by providing a clear set of rules that encourage experimentation while maintaining investor protection. This regulatory clarity has given businesses the confidence to explore tokenized finance solutions without fear of running afoul of the law. ADVERTISEMENT The growth of blockchain technology in Singapore has been swift, particularly in sectors like real estate, where tokenized property shares allow for fractional ownership. Investors no longer need substantial capital to gain exposure to high-value properties. Instead, they can purchase smaller stakes in tokenized properties, broadening the pool of potential investors and promoting liquidity in traditionally illiquid markets. Equally noteworthy is the role of Singapore's thriving fintech sector. The city has seen a surge in startups developing blockchain-based solutions, ranging from platforms for trading tokenized securities to services that facilitate the creation and management of digital assets. This startup ecosystem is supported by venture capital, which has flooded the market with investment, accelerating the development of blockchain applications in finance. Global players are also taking note of Singapore's advancements in tokenization. International banks and financial institutions are increasingly setting up operations in the city, attracted by the favourable regulatory environment and the city's growing reputation as a hub for blockchain and digital asset innovation. For instance, HSBC and Standard Chartered have partnered with local firms to explore tokenized securities and digital asset offerings, cementing Singapore's status as a global leader in this space. The introduction of projects like Project Ubin has been pivotal in demonstrating the benefits of blockchain technology within the financial services sector. Initiated by the MAS, Project Ubin explored the use of blockchain for the clearing and settlement of payments, offering proof of concept for tokenized digital currencies. This project not only advanced the understanding of blockchain within financial markets but also helped to strengthen Singapore's position as a blockchain innovation leader. The government's commitment to blockchain and tokenization goes beyond regulation. Singapore has also established itself as a key player in blockchain research and development, with several academic institutions focusing on the technology's financial applications. Collaborations between private companies and research bodies ensure that Singapore stays at the cutting edge of blockchain development. Tokenization also promises to democratize finance, giving more people access to investment opportunities that were once restricted to the wealthy. By lowering the barriers to entry, tokenized assets open up new possibilities for retail investors, who can now invest in a wide range of tokenized products with much smaller capital commitments. Despite these advancements, challenges remain. As tokenization grows, concerns about security, compliance, and the stability of the underlying blockchain systems need to be addressed. Singapore's regulatory bodies are aware of these risks and continue to refine regulations to ensure that tokenized markets remain secure and trustworthy. The development of more sophisticated security protocols and smart contract auditing tools is expected to further strengthen the ecosystem.
Zawya
3 days ago
- Zawya
Standard Chartered expands MENA custody network with Egypt launch
Standard Chartered announced today the launch of its direct custody services in Egypt, further expanding its global post-trade offering across the Middle East and North Africa (MENA). This important milestone builds on the successful rollout of its direct custody services in the Kingdom of Saudi Arabia earlier this year and reflects the Bank's broader strategy to deepen its presence across high-growth, strategically important markets. The service enables institutional clients to hold and manage a wide range of securities with greater efficiency, transparency, and security. Operated through Standard Chartered Bank Egypt, the platform supports a wide range of securities including equities, treasury bills, government bonds and corporate bonds. Services include safekeeping, settlements, and corporate actions, and can be delivered via various mediums including through the Bank's globally renowned Straight2Bank (S2B) platform. Mohammed Gad, Chief Executive Officer, Standard Chartered Egypt, said: 'This launch represents a key milestone in our efforts to strengthen Egypt's financial infrastructure and expand investor access to the region. Egypt is a vital market for us, not only as a new BRICS member, but as a rising investment hub linking Africa, the Gulf and beyond.' He added: 'By introducing direct custody services from day one, we are providing our institutional clients with greater speed, transparency, and operational efficiency. Backed by our global platform and deep local expertise, this offering will help unlock capital flows into Egypt and support the growth of a more resilient, connected capital market.' The custody service in Egypt is fully licensed by the Financial Regulatory Authority and approved by the Central Bank of Egypt. It supports Egypt's broader ambitions to modernise its financial ecosystem, attract foreign direct investment, and diversify sources of capital in line with Vision 2030. With growing interest from investors across Asia, the Gulf and Africa, the launch is well-timed to meet demand for institutional-grade infrastructure and post-trade solutions. Scott Dickinson, Regional Head of Financing and Securities Services AME, said: Standard Chartered's expanding custody footprint across the region underlines its commitment to supporting capital markets in key emerging economies. By improving investor access, raising service standards, and helping to attract long-term capital, the Bank continues to play a leading role in connecting global investment to opportunity across the MENA region. For further information please contact: Wasim Ben Khadra (WBK) Cluster Head of Corporate Affairs, Brand, Marketing & Head of Communications for UAE, Middle East and Pakistan Standard Chartered About Standard Chartered We are a leading international banking group, with a presence in 54 of the world's most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges. For more stories and expert opinions please visit Insights at Follow Standard Chartered on X, LinkedIn, Instagram and Facebook.
Zawya
4 days ago
- Zawya
EToro reports second quarter 2025 results
Assets Under Administration grew by 54% year-over-year to $17.5 billion Funded accounts grew by 14% year-over-year to 3.63 million Dubai, United Arab Emirates – eToro Group Ltd. ('eToro', or the 'Company') (NASDAQ: ETOR), the trading and investing platform, today announced financial results for the second quarter ended June 30, 2025. ' I am proud of the eToro team for delivering another strong quarter, while meaningfully expanding our product innovation and geographical footprint. In the second quarter, we offered 24/5 trading for U.S. equities, introduced new long-term portfolios in partnership with Franklin Templeton, and launched savings products in France, all while strengthening our footprint in Asia through our new Singapore hub. These advancements reflect our commitment to making investing simpler and more accessible for our global community. Looking ahead, we are excited to continue developing technologies like tokenization and AI tools that we believe will transform how retail investors interact with the markets and create new opportunities for growth. As we continue to execute on our strategy, we remain confident in our ability to drive sustainable value for our users and shareholders,' commented Yoni Assia, CEO and Co-founder of eToro. 'We are very pleased with our 2025 second quarter results, the first as a public company. Net contribution grew 26% year over year and adjusted EBITDA grew 31% year over year reflecting our focus on profitable revenue growth,' said Meron Shani, eToro CFO. Second Quarter 2025 Financial and Product Highlights Net contribution increased by 26% year over year to $210 million, compared to $167 million in the second quarter of 2024, driven primarily by increased trading activity. Net income (GAAP) was $30.2 million, compared to $30.6 million in the second quarter of 2024, and included $15 million of IPO and other related costs. Adjusted Net Income (Non-GAAP) was $54.2 million, compared to $44.2 million in the second quarter of 2024. Adjusted EBITDA (non-GAAP) increased by 31% year over year to $72 million, compared to $55 million in the second quarter of 2024, largely due to increased revenue and disciplined cost management. Adjusted Diluted EPS (non-GAAP) was $0.56, compared to $0.51 in the second quarter of 2024. Funded accounts increased 14% year over year to 3.63 million compared to 3.17 million in the second quarter of 2024. This was driven primarily by ongoing user acquisition and retention efforts, as well as the acquisition of Australian investing app Spaceship in 2024. Assets under Administration grew by 54% year over year to $17.5 billion, compared to $11.3 billion in the second quarter of 2024. Cash, cash equivalents and short term investments were $1.2 billion as of June 30, 2025. Launched key products in AI, tokenization, savings and eToro money across our four pillars of Trading, Investing, Wealth Management and Neo-banking. Business Highlights eToro continued to focus on sustainable, profitable growth in the second quarter, launching products and services to support users at every stage of their investing journey. See 'Non-GAAP Financial Metrics and Key Performance Indicators' below for additional information and a reconciliation to GAAP for all Non-GAAP financial metrics. Adjusted EBITDA margin is based on net contribution. Trading: eToro strengthened its trading offering with the launch of 24/5 trading for 100 U.S. equities, enabling users to trade around the clock. The Company expanded its U.S. crypto offering to over 100 assets, aligning with its global coverage of over 130. In addition, eToro announced its tokenization strategy and is launching tokenized US listed stocks, laying the groundwork for tokenized stocks with future transfer capabilities. Futures and spot-quoted futures were also made accessible to more investors, providing new opportunities for diversification. Investing: eToro rolled out a suite of Alpha Portfolios as part of its Smart Portfolio offering. These AI-powered strategies are built using advanced analysis of multiple sources of data including eToro's proprietary retail trading data. In addition, eToro announced a partnership with Franklin Templeton to launch new portfolios offering target date investment strategies. AI innovation continues to play a key role at the Company, highlighted by the introduction of Tori, an AI-powered analyst built on the latest LLM models, which delivers personalized insights, platform guidance, and educational support. The Company has also launched a suite of AI-powered tools and APIs to enable advanced strategy building and customization. Wealth management: As part of its long-term investment strategy, eToro continued to enhance its wealth solutions, launching French savings products, including retirement (PER) and life insurance, giving users access to long-term, tax-advantaged investing directly on the platform. The Company expanded recurring investments beyond the U.K. and E.U. to the U.A.E., enabling more users to automate contributions into stocks, ETFs, and crypto. Neo-banking: The Europe-wide rollout of the eToro Money card turned everyday spending into portfolio-building with 4% stock-back rewards, premium travel benefits, and 0% FX fees. The card complements eToro's local IBAN offering, allowing seamless management of spending, deposits, and investments across the platform. Global expansion: eToro activated its Capital Markets Services license from the Monetary Authority of Singapore (MAS). This reinforces eToro's presence in the Asia-Pacific region, establishing Singapore as its Asian headquarters, supported by local talent, strategic partnerships, and contributions to Singapore's fintech ecosystem. Conference Call and Livestream Information eToro will host a video call to discuss its results at 5:30 a.m PT / 8:30 a.m ET today, August 12, 2025. The video call can be accessed at along with this earnings press release and accompanying slide presentation. The event will also be live streamed to eToro's YouTube and official channels. Contact Media Relations - pr@ Investor Relations - investors@ About eToro eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we've created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media center here for our latest news.
