TL;DR
- JellyC partners with OKX and Standard Chartered to use Franklin Templeton’s tokenized money market fund as off-exchange collateral, enhancing security and capital efficiency.
- Standard Chartered acts as G-SIB custodian while OKX provides trading infrastructure, creating a tripartite structure that mitigates counterparty risk for institutional players.
- The program supports JellyC’s four digital asset funds and targets Australia’s $2.5T pension industry, signaling broader TradFi-crypto integration.
Digital asset manager JellyC has entered a landmark tripartite collateral program with crypto exchange OKX and banking giant Standard Chartered, integrating Franklin Templeton’s tokenized money market fund (TMMF) as its preferred trading collateral.
This institutional-grade framework allows JellyC to leverage cryptocurrencies and tokenized RWAs as off-exchange collateral under Standard Chartered’s custody, elevating security while optimizing capital efficiency for its $1B+ fund suite. The partnership indicates the rapid merging of TradFi infrastructure with digital asset markets.
Tokenized TMMF: The Collateral Backbone
JellyC will utilize Franklin Templeton’s natively minted TMMF, a blockchain-based money market fund, as primary collateral. The fund offers instant verification of legal ownership and distributes daily yields through airdrops, functioning around the clock. “This eliminates settlement risk and unlocks instantaneous liquidity,” stated JellyC CEO Michael Prendiville.
The TMMF’s integration into OKX’s trading ecosystem enables JellyC to maintain market exposure without liquidating core positions, enhancing portfolio flexibility.
Tripartite Security Architecture
Standard Chartered, designated a Globally Systemically Important Bank (G-SIB), serves as the program’s custodian, safeguarding all collateral assets. OKX provides the trading infrastructure with institutional-grade compliance protocols, while Franklin Templeton’s tokenized fund ensures on-chain transparency.
This structure mitigates counterparty risk, a critical barrier for institutional adoption. “We’ve built the infrastructure institutions demanded: bank-level security married to crypto market access,” emphasized OKX Australia CEO Kate Cooper.
JellyC’s Fund Strategy Integration
The collateral program bolsters four flagship funds:
- Bluebottle Bitcoin Plus Fund: Merges BTC exposure with strategies that yield returns without market risk.
- Bluebottle Market Neutral Fund: Combines blockchain arbitrage with tokenized bonds and bills.
- Bluebottle Digital Infrastructure Fund: Provides staking returns from top blockchain networks.
- Bluebottle Multi-Strategy Fund: Spreads out over early-stage projects, validation, and arbitrage.
- Tokenized collateral allows simultaneous yield generation and trading leverage across these vehicles.
Institutional Adoption Catalyst
The program directly targets Australia’s $2.5T superannuation (pension) industry, providing a compliant blueprint for wealth managers. Prendiville notes “explosive demand” for solutions merging banking infrastructure with crypto markets. As tokenized RWAs surge past $12B in value, this tripartite model sets a precedent for global institutional entry, with OKX confirming “significant momentum” building across Australian markets.
