JellyC Teams Up With OKX and Standard Chartered on Tokenized Collateral Venture

Digital asset management firm JellyC just announced a groundbreaking collaboration with cryptocurrency exchange OKX and global banking powerhouse Standard Chartered, marking a significant milestone in institutional crypto adoption. The partnership centers around using Franklin Templeton’s tokenized money market fund as collateral for trading activities, creating a sophisticated framework that bridges traditional finance with digital assets.

This institutional-grade arrangement enables JellyC to utilize both cryptocurrencies and tokenized real-world assets as off-exchange collateral while Standard Chartered provides custody services. The setup significantly enhances security measures and capital efficiency for JellyC’s fund portfolio, which manages over $1 billion in assets. The collaboration represents a major step forward in merging conventional financial infrastructure with digital asset markets.

The Role of Tokenized Money Market Funds

At the heart of this arrangement sits Franklin Templeton’s blockchain-based money market fund, which JellyC will deploy as its primary collateral instrument. This tokenized fund offers several advantages: it provides instant verification of legal ownership and distributes daily yields through automated airdrops, operating continuously without traditional market hours constraints. According to JellyC CEO Michael Prendiville, this technology eliminates settlement risks while providing immediate liquidity access.

The integration of this tokenized fund into OKX’s trading infrastructure allows JellyC to maintain its market positions without needing to sell core holdings, giving the firm greater flexibility in managing its investment portfolios.

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Building a Three-Way Security Framework

The program’s architecture involves three key players, each bringing essential capabilities to the table. Standard Chartered, recognized as a Globally Systemically Important Bank, acts as the custodian responsible for safeguarding all collateral assets. OKX contributes its trading platform equipped with institutional-grade compliance features, while Franklin Templeton’s tokenized fund ensures transparent on-chain operations.

This three-party structure addresses counterparty risk concerns that have historically deterred institutional participation in crypto markets. Kate Cooper, CEO of OKX Australia, emphasized that they’ve constructed the exact infrastructure institutions have been requesting: combining bank-level security standards with direct crypto market access.

Supporting JellyC’s Investment Strategies

The collateral program strengthens four key investment vehicles managed by JellyC. The Bluebottle Bitcoin Plus Fund combines Bitcoin exposure with strategies designed to generate returns independent of market movements. Their Market Neutral Fund blends blockchain arbitrage opportunities with tokenized bonds and treasury bills. The Digital Infrastructure Fund focuses on generating staking returns from major blockchain networks, while the Multi-Strategy Fund diversifies across early-stage projects, validation services, and arbitrage opportunities.

Using tokenized collateral enables these funds to generate yields while simultaneously accessing trading leverage, creating more efficient capital deployment across all investment strategies.

The initiative specifically targets Australia’s massive $2.5 trillion superannuation industry, offering a regulatory-compliant framework for traditional wealth managers exploring digital assets. Prendiville reports experiencing “explosive demand” from institutions seeking solutions that combine established banking infrastructure with cryptocurrency market access. With tokenized real-world assets now exceeding $12 billion in total value, this three-party model could serve as a template for institutional adoption globally. OKX has confirmed witnessing “significant momentum” building throughout Australian financial markets.

Market Ripple Effects

This partnership between established financial institutions and crypto platforms could accelerate institutional adoption of digital assets, potentially driving increased demand for tokenized securities and blockchain-based collateral solutions. The involvement of Standard Chartered as a G-SIB custodian may encourage other traditional banks to explore similar arrangements, signaling growing confidence in crypto infrastructure among mainstream financial players.