Standard Chartered Launches RLUSD Custody in Partnership With Ripple

Highlights:

• Standard Chartered has launched custody services for Ripple’s RLUSD stablecoin on the XRP Ledger in Dubai.
• The bank is working with Ripple and LMAX Group to allow institutions to use RLUSD as trading collateral.
• The planned integration would let clients use RLUSD without transferring tokens, but testing and regulatory approvals remain pending.

Standard Chartered has launched institutional custody services for Ripple’s RLUSD stablecoin on the XRP Ledger (XRPL). The bank is also working with Ripple and LMAX Group to let institutional clients use RLUSD as collateral for trading without moving tokens directly to a trading platform.

According to an official announcement on October 12, the custody service is now available through Standard Chartered’s Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority (DFSA). The planned collateral integration remains subject to testing, approvals, and regulatory requirements.

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Standard Chartered Begins RLUSD Custody on XRP Ledger

The new service allows eligible institutional clients to hold RLUSD through Standard Chartered’s digital asset custody infrastructure. RLUSD is Ripple’s US dollar-backed stablecoin, designed to maintain a value of $1. The bank currently supports RLUSD issued on the XRP Ledger, a blockchain used to transfer digital assets and process financial transactions.

Waqar Chaudry, Global Head of Digital Assets at Standard Chartered, said institutions want to trade digital assets without putting their funds at risk. “Institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed,” Chaudry said. He added that the collaboration would help clients securely hold assets, access liquidity, and use collateral more efficiently.

Ripple and LMAX Plan to Use RLUSD as Trading Collateral

Along with the custody launch, Standard Chartered is working with Ripple and LMAX Group to allow clients to use RLUSD as trading collateral. The companies plan to use Standard Chartered’s collateral mirroring model. This system would let clients use RLUSD held at the bank for trading without moving the tokens to LMAX Group.

As a result, institutions could trade using their RLUSD holdings while keeping their assets with Standard Chartered. The companies expect this approach to reduce transfer risks and help clients manage their funds more efficiently.

Meanwhile, Luke Dorney, Head of Custody for Digital Assets at LMAX Group, said the company plans to adopt the model to give clients more flexibility when using RLUSD for trading. However, the companies have not yet announced a launch date for the integration.

Ripple said the partnership combines its RLUSD stablecoin with Standard Chartered’s custody services and LMAX Group’s trading platform. Jack McDonald, Ripple’s Senior Vice President of Stablecoins, said the company designed RLUSD for institutional use, where secure custody and reliable trading services are important.

RLUSD Integration Awaits Final Testing and Approvals

When integration becomes active, organizations can use RLUSD for trading without transferring tokens from their bank account to a trading platform. Nevertheless, the RLUSD service is currently under development. According to Standard Chartered, organizations need to finish testing, reach agreements, and receive the required permissions before releasing this service. More information will be revealed soon.