JellyC, a digital asset investment manager with over $100 million in assets under management, said it joined a program with crypto exchange OKX and international bank Standard Chartered (STAN) that will allow it to trade cryptocurrencies while keeping its collateral secure off-platform.
The Australian company said it will use a Franklin Templeton tokenized money market fund (TMMF) as its preferred trading collateral. The collateral will be held by Standard Chartered, according to the press release shared with CoinDesk.
JellyC said the initiative will enhance its capital efficiency and reduce its direct exposure to OKX, potentially attracting institutional investments and mitigating the risk of an FTX-style blowup that destroyed billions in investor wealth.
“Franklin Templeton’s natively minted on-chain TMMF provides legal certainty of fund ownership in real time, 24/7/365, and airdrops daily as new tokens,” JellyC CEO Michael Prendiville said in the email. “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.”
Prendville said the approach is suitable for the wealth and funds management sector, as well as Australia's superannuation, or pensions savings, industry and caters to the demand for digital asset trading products that leverage established banking infrastructure to ensure secure and compliant capital deployment in the cryptocurrency market.