Standard Chartered Launches Ripple RLUSD Stablecoin Custody Service

Standard Chartered has introduced institutional custody services for Ripple's RLUSD stablecoin, expanding its digital asset offerings while preparing to support the token's use as collateral for institutional trading.

The multinational banking group announced Monday that it had launched RLUSD custody on the XRP Ledger (XRPL) through its Dubai International Financial Centre (DIFC) branch. The service provides eligible institutional clients with access to Standard Chartered's digital asset custody infrastructure, allowing them to hold RLUSD within a regulated banking environment.

Standard Chartered expands institutional custody services to RLUSD

The addition of RLUSD represents another step in Standard Chartered's efforts to develop digital asset services for institutional customers. Through its DIFC branch, the bank will provide custody for the stablecoin issued by Ripple, enabling eligible clients to hold their tokens within its existing digital asset infrastructure.

The initiative also forms part of a broader effort to connect institutional cryptocurrency holdings with traditional financial services, particularly in areas such as trading collateral and counterparty risk management.

RLUSD could be used as trading collateral through LMAX Group

Standard Chartered is planning to extend its collateral-mirroring model to LMAX Group, an institutional trading services provider. Under the proposed arrangement, clients would be able to use eligible RLUSD holdings as collateral for trading activities while keeping the underlying tokens in Standard Chartered's custody.

The structure would allow LMAX Group to recognize the collateral value of the stablecoins without requiring clients to transfer their assets directly to the trading platform. According to Standard Chartered, this approach could help reduce risks associated with moving digital assets between institutions while giving clients greater control over their exposure to trading counterparties. The planned integration would also provide another potential use case for RLUSD in institutional financial markets.

Ripple and LMAX continue expanding institutional stablecoin adoption

The proposed collateral arrangement builds on an existing partnership between Ripple and LMAX Group, announced in January 2026. That collaboration was established to encourage greater institutional adoption of RLUSD and improve the movement of digital assets across different trading markets.

Standard Chartered's involvement could further support these efforts by providing banking infrastructure for stablecoin custody and collateral management. However, the bank emphasized that the additional collateral functionality has not yet been finalized. Its implementation remains subject to the completion of legal documentation, technical testing, applicable regulatory requirements and internal approvals.

Sources:

https://www.sc.com/en/press-release/standard-chartered-launches-rlusd-custody-and-joins-planned-collateral-integration-with-ripple-and-lmax-group/

https://www.lmax.com/press-centre/lmax-group-and-ripple-partner-to-accelerate-institutional-stablecoin-adoption-and-cross-asset-mobility

https://cointelegraph.com/news/standard-chartered-rlusd-custody-lmax-deal