JellyC Collaborates With OKX and Standard Chartered to Enhance Institutional Crypto Trading in Australia
Australian digital asset management firm JellyC has formed a strategic alliance with crypto exchange OKX and global banking leader Standard Chartered to improve institutional access to digital asset investments within Australia. This partnership aims to provide a secure and compliant trading environment for institutions eager to explore the cryptocurrency market.
Details of the Initiative
Under this collaboration, JellyC will leverage Franklin Templeton’s tokenised money market fund (TMMF) as off-exchange collateral for trades executed on the OKX platform, while Standard Chartered will provide essential custody services. By utilising the TMMF and, to a lesser extent, cryptocurrencies as collateral, JellyC seeks to enhance capital efficiency and mitigate risk in trading operations.
In a statement, JellyC highlighted that this new approach significantly boosts its capital efficiency while upholding the highest security standards. CEO Michael Prendiville emphasised that the arrangement aligns institutional digital asset investments in Australia with the rigorous safety standards traditionally associated with finance.
Industry Perspectives
Prendiville noted that combining Franklin’s TMMF with Standard Chartered and OKX’s collateral framework elevates safety and soundness comparable to traditional financial systems, ensuring the setup is suitable for a modern digital landscape.
Standard Chartered and OKX unveiled their collateral mirroring programme earlier this year, enabling firms to use cryptocurrencies and tokenised money market funds as off-exchange collateral. The introduction of Franklin Templeton’s TMMF as the inaugural fund for this programme marks a significant advancement in the digital asset arena.
Hong Fang, President of OKX, stated that leveraging Standard Chartered’s esteemed custodian status alongside OKX’s prominence in cryptocurrency trading sets a new industry standard, providing institutional clients with a reliable environment for scaling their trading initiatives.
Investment Products and Market Demand
JellyC’s offerings include products tailored for the wealth management and superannuation sectors in Australia. Prendiville remarked on the growing institutional appetite for digital asset trading solutions that utilise established banking infrastructure to ensure secure and compliant capital deployment in cryptocurrency markets.
Franklin Templeton’s Role in Tokenisation
Franklin Templeton has been at the forefront of tokenising money market funds, having launched the Franklin OnChain US Government Money Fund (FOBXX) in 2021—this was the first US-registered mutual fund to employ a public blockchain for transaction and ownership tracking. Initially available on the Stellar blockchain, FOBXX has expanded its operations across multiple blockchains, including Avalanche, Base, Aptos, and Ethereum, allowing both institutional and retail investors to access the fund through BENJI tokens.
As of now, data from a real-world asset tracking platform shows FOBXX as the second-largest tokenised US Treasury fund, boasting a market capitalisation of over US$764 million (approximately AU$1.1 billion), trailing BlackRock’s BUIDL fund, which stands at US$2.4 billion (about AU$3.68 billion).
Understanding Tokenised Money Market Funds (TMMFs)
Tokenised money market funds are gaining traction due to their stability and potential to function like stablecoins. They maintain a steady value, are easily transferable, and can be utilised as collateral with established connections to traditional finance (TradFi).
Unlike typical stablecoins, TMMFs are regulated securities that pay yields directly to shareholders and are accessible only to investors who have completed Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. Furthermore, TMMFs provide higher transparency, with strict backing by low-risk assets and daily reporting that assures investors of the fund’s status.
In summary, TMMFs present a compelling alternative to stablecoins for institutional investors, offering enhanced protections while retaining the advantageous characteristics of stable value, transferability, and collateral usability.
This collaboration between JellyC, OKX, and Standard Chartered marks a significant step forward in fortifying the institutional investment landscape in digital assets in Australia, aligning it more closely with traditional financial standards to foster greater confidence and participation in the cryptocurrency market.
