OKX is bringing its collateral mirroring programme with Standard Chartered to the European Economic Area as it seeks to expand its services in the region under the MiCA license.

According to a recent announcement, the major crypto exchange is expanding its partnered custody service with Standard Chartered into the European Economic Area. Dubbed the collateral mirroring programme, the service allows for institutional clients to store their assets on Standard Chartered as a custodian while their balance is “mirrored” on OKX for on-chain trading.

The service combines traditional finance with the crypto market, granting clients the ability to have bank-grade custody and access to crypto through the exchange. Therefore, institutional clients are able to utilize cryptocurrencies and tokenized market funds as off-exchange collateral for trading.

Initially, the service was first launched in the United Arab Emirates earlier this year. Now, the exchange plans to extend the service’s reach into the European region.

“By bringing this partnership into the EEA, we’re making it possible for clients to trade and secure their digital assets on a truly global scale,” said the OKX team in its official statement.

“For us, this isn’t just an expansion. It’s the next step in building a safer, more reliable ecosystem for digital assets in Europe,” the team continued.

Global Head of Financing and Securities Services at Standard Chartered Margaret Harwood-Jones stated that the expansion focuses on leveraging the already established custody infrastructure along with the existing regulatory framework to ensure security and compliance for institutional clients in Europe.

OKX expands on MiCA jurisdiction

The expansion of OKX’s partnership with Standard Chartered into the European Economic Area aligns with the EU’s MiCA regulatory framework, which establishes uniform rules for crypto asset service providers or CASPs across the region to “safeguard user assets.”

Under the MiCA framework, exchanges, custodians, and other crypto service providers are required to adhere to established standards on consumer protection, capital requirements, and custody of client assets, similar to those imposed on traditional financial institutions.

The “collateral mirroring” mechanism, in particular, addresses MiCA’s focus on reducing counterparty and custody risk, ensuring that institutional clients’ digital assets remain safely held within a regulated banking environment while still being tradable on a licensed crypto platform.

On the other hand, OKX and Standard Chartered will need to maintain a 1:1 robust mirroring system with real-time adjustments and collateral management. Any mismatch or lag could create risk of under-collateralization, margin shortfall, or disputes. Regulators will likely demand strong operational resilience, contingency plans, and auditability for the programme.

OKX received its full Markets in Crypto-Assets license on January 27, 2025. Granted to the exchange by Maltese financial authorities, the license allows the exchange to offer regulated crypto services to 28 states across the Europe.

However, in April 2025, the exchange was ordered to pay a fine of €1.1 million ($1.2 million) for failing to comply with the nation’s Anti-Money Laundering standards. Authorities also alleged that the crypto firm failed to properly monitor or follow up on cryptocurrency transactions conducted on its platform.

Most recently, OKX was also forced to pay a fine of €2.25 million ($2.6 million) to the Dutch National bank for offering crypto service without registering to the central bank. The violation applies to OKX during the period between July 2023 to August 2024 when it offered its services before it held a MiCA license.