Crypto exchange OKXhas added BUIDL, a tokenized money market fund from BlackRock with about $2.5billion in assets, to its collateral framework with Standard Chartered. Thesetup allows eligible institutional and VIP clients to use it as trading marginwhile it remains held off-exchange with the bank.SingaporeSummit: Meet the largest APAC brokers you know (and those you still don't!).The move builds on anexisting partnership between the two firms. Last year, StandardChartered became an institutional custodian for OKX in the EuropeanEconomic Area after securingregulatory approval in Luxembourg to offer digital asset custody services.The step marked the bank’s entry into the European Union as the Markets inCrypto-Assets framework began to take effect.Tokenized Treasuries Enter Margin SystemThe companies said ina release today (Tuesday) that clients can post BUIDL as collateral held withStandard Chartered while trading on OKX Middle East, or deposit it directly onthe exchange. They described the setup as the first such framework backed by aglobally systemically important bank.The arrangementreflects an effort to make tokenized real-world assets usable in tradinginfrastructure. It enables a yield-bearing fund to be used as collateral whileremaining in regulated custody, making such instruments more practical fortrading and risk management.One issue the modeladdresses is how trading capital is used. Cash posted as margin on cryptoexchanges typically earns little or no return. Converting it into a tokenizedmoney market fund backed by US Treasuries and repurchase agreements allowsinstitutions to retain yield while supporting trading activity.Rifad Mahasneh, CEO for OKX Middle East,North Africa and CIS, said BUIDL is treated as fungible with dollar-basedassets such as stablecoins, while clients “retain ownership of the asset andits yield.”BlackRock is bringing its roughly $2.5 billion money market fund to cryptocurrency exchange operator OKX https://t.co/DqRmNTU4NH— Bloomberg (@business) April 28, 2026Tokenized Treasury CollateralCompetition GrowsThe move adds tocompetition among exchanges. Binance has introduced similar integrations oftokenized treasury products, including funds from BlackRock and FranklinTempleton, into off-exchange collateral frameworks.The BUIDL fund,tokenized by Securitize, invests in cash, US Treasury bills and repurchaseagreements, with yield distributed onchain.Standard Charteredacts as the off-exchange custodian, holding client collateral separately fromthe exchange’s own assets, while OKX manages margining and liquidation throughits internal risk systems. Mahasneh said the structure aligns with traditionalfinance standards but did not detail margin calls during periods of marketstress.This article was written by Tareq Sikder at www.financemagnates.com.