- Main event enhances secure crypto trading using tokenized collateral.
- Partnership involves JellyC, OKX, and Standard Chartered.
- Addresses exchange risk for institutional investors.
Crypto Fund JellyC has partnered with OKX and Standard Chartered, using Franklin Templeton’s tokenized money market fund as collateral, to enable secure crypto trading leveraging off-exchange assets.
This partnership could enhance institutional investor confidence and compliance, following FTX concerns, by using bank-custodied collateral to reduce trading risks.
JellyC, an Australian digital asset manager, has teamed up with OKX for secure crypto trading by utilizing tokenized money market funds. CEO Michael Prendiville highlighted their innovative approach for enhanced security in trading operations.
The partnership includes Standard Chartered, which will hold the collateral, providing a structure that matches traditional finance standards. This collaboration aims to reduce exposure to exchange risks, leveraging JellyC’s $100 million in assets.
This arrangement provides institutional investors with additional capital security, addressing concerns raised post-FTX collapse. Their solution aims to ensure a robust market infrastructure by using off-exchange collateral methods to mitigate risks.
By leveraging a structured market presence, the partners seek to increase institutional participation, appealing particularly to wealth management sectors. The use of Franklin Templeton TMMF could draw more institutional interest.
“Marrying the Franklin TMMF with the Standard Chartered and OKX tripartite collateral structure elevates safety and soundness to a level akin to traditional finance, making this fit for purpose in a digital world.” – Michael Prendiville, CEO, JellyC
The collaboration reflects a growing trend among crypto sectors to adapt safety mechanisms. The tripartite structure may set a precedent for future industry practices. The marketplace evolution demonstrates a commitment to sustaining investor confidence amidst regulatory pressures.
Continued innovation in crypto trading infrastructure solidifies the industry’s investment appeal. The strategic use of tokenized funds potentially marks a shift toward more compliance-driven investments aimed at fortifying market integrity.
