Image Credit: Shutterstock
- Standard Chartered launched institutional custody for Ripple's RLUSD stablecoin through its Dubai International Financial Centre branch.
- The bank is working with Ripple and LMAX Group on a planned system allowing eligible clients to use RLUSD as trading collateral.
- The LMAX collateral arrangement remains under development and is subject to documentation, testing, regulatory requirements and internal approvals.
Standard Chartered has launched institutional custody for Ripple’s RLUSD stablecoin through its Dubai International Financial Centre branch. The bank is also working with Ripple and LMAX Group on a planned system that would let eligible clients use RLUSD as trading collateral without moving the underlying tokens to the trading venue.
The custody service is live now. The collateral arrangement is still under development and remains subject to documentation, testing, regulatory requirements and internal approvals.
RLUSD Can Remain in Bank Custody
Under the planned structure, Standard Chartered would extend its collateral-mirroring framework to LMAX Group. The bank would use that framework to recognize eligible RLUSD held in custody for use across agreed LMAX trading and collateral-management products.
The model is intended to reduce the need to move assets between custodians and trading venues. Standard Chartered said this could help institutions manage operational and counterparty risk while keeping RLUSD under bank custody.
Standard Chartered Global Head of Digital Assets Waqar Chaudry said institutional investors increasingly want digital-asset access without changing how assets are safeguarded.
“Institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed.”
LMAX Collateral Integration Is Not Live Yet
The companies intend to make RLUSD eligible collateral for selected LMAX products, but they have not announced which products will be covered or when the integration will launch. Implementation still depends on successful testing, applicable laws, jurisdictional readiness and other approvals.
Standard Chartered’s current custody support covers RLUSD issued on the XRP Ledger. The planned LMAX link would add a trading use case while leaving the tokens with the bank rather than requiring direct transfers for each transaction.
Deal Extends RLUSD Into Institutional Markets
The arrangement gives eligible institutions another bank-provided custody option for RLUSD through Standard Chartered’s DIFC operation. It also creates a potential route for using the stablecoin within institutional trading infrastructure.
If completed, the LMAX integration would connect bank custody with collateral management without requiring RLUSD to leave Standard Chartered for every trading use.
