Key Takeaways
- Standard Chartered has launched institutional custody for Ripple’s RLUSD stablecoin on the XRP Ledger through its Dubai International Financial Centre branch.
- The bank is working with Ripple and LMAX Group to let eligible institutions use RLUSD as trading collateral without transferring the tokens to the trading venue.
- The collateral arrangement is not live yet and remains subject to testing, documentation, regulatory requirements and internal approvals.
Standard Chartered has launched institutional custody for Ripple’s RLUSD stablecoin on the XRP Ledger (XRPL) and is working with Ripple and LMAX Group on a plan to let institutional clients use the stablecoin as trading collateral.
Announced on October 12, the service is available through Standard Chartered Bank’s Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority (DFSA). Eligible clients can now access the bank’s digital asset custody infrastructure for RLUSD issued on XRPL.
The planned collateral service would allow clients to keep RLUSD in bank custody while using its value to support eligible trading activity through LMAX Group. However, that part of the arrangement has not launched and remains subject to further testing and approvals. Standard Chartered’s announcement confirms that the custody service is live, while the collateral integration is still being developed.
Standard Chartered Adds RLUSD to Its Custody Services
The new service gives eligible institutional clients a way to hold RLUSD through Standard Chartered’s existing digital asset custody infrastructure.
RLUSD is Ripple’s US dollar-backed stablecoin, designed to maintain a value of $1. Stablecoins are commonly used for transferring dollar-denominated value and supporting trading activity in digital asset markets.
Institutional custody allows a financial institution to safeguard digital assets on behalf of clients. For businesses that need to meet internal risk controls or custody requirements, holding assets with a banking provider can offer an alternative to managing them directly or transferring them to a trading platform.
Standard Chartered has been expanding its digital asset services across several financial centers. The RLUSD launch adds another stablecoin to its custody offering and extends its work with Ripple and LMAX Group.
The bank has not disclosed how many clients have adopted the new service or how much RLUSD it currently holds in custody.
How the LMAX Collateral Plan Would Work
The next stage of the partnership focuses on collateral management. Under the proposed arrangement, eligible clients would keep their RLUSD with Standard Chartered, while the value of approved collateral would be mirrored to LMAX Group.
This would allow the trading venue to recognize the collateral without requiring the underlying tokens to be transferred directly to it.
Collateral is an asset used to secure a financial obligation or trading position. In digital asset markets, transferring collateral between institutions and trading venues can introduce operational steps and additional exposure to counterparties.
Standard Chartered says its collateral mirroring model is intended to reduce transfer-related operational risk, help manage counterparty exposure and improve capital efficiency.
The model would not remove all trading or counterparty risks. Instead, it would change how eligible collateral is recognized and managed between the bank and LMAX Group.
| Participant | Role in the Partnership |
| Standard Chartered | Provides institutional custody for RLUSD and the collateral mirroring framework. |
| Ripple | Issues RLUSD and supports its institutional adoption. |
| LMAX Group | Plans to accept eligible RLUSD collateral for agreed trading and collateral management products. |
| XRP Ledger | Provides the blockchain infrastructure for RLUSD issued on XRPL. |
Table 1. The roles of Standard Chartered, Ripple and LMAX Group in the planned RLUSD collateral arrangement.
Ripple and LMAX Already Have a Stablecoin Partnership
The announcement builds on an earlier agreement between Ripple and LMAX Group.
In January 2026, the companies announced a multi-year partnership to integrate RLUSD into LMAX’s institutional trading infrastructure. Ripple also committed $150 million in financing to support LMAX Group’s cross-asset growth strategy.
The partnership was designed to expand RLUSD’s potential use across institutional trading, including collateral and settlement. Standard Chartered’s involvement adds a bank custody component to that plan.
By combining stablecoin issuance, institutional custody, and trading infrastructure, the companies are seeking to make RLUSD usable across more parts of institutional financial markets. However, the extent of adoption will depend on the final implementation, eligible products, and client participation.
What the Development Means for RLUSD
The custody launch gives RLUSD another institutional use case beyond holding and transferring dollar-denominated value. If the planned LMAX integration goes live, eligible institutions could use the stablecoin to support trading positions while keeping the underlying tokens in custody with Standard Chartered.
That could reduce the need to move assets between separate institutions for every collateral-related workflow. It could also make RLUSD more practical for firms that require bank custody arrangements.
However, the announcement does not establish how much additional demand the service will generate. Standard Chartered has not provided expected transaction volumes, client numbers, or a launch date for the collateral feature.
The development also does not mean that RLUSD is now accepted as collateral for every LMAX product. The companies intend to enable it for agreed products and solutions, subject to the relevant conditions.
What Comes Next
Standard Chartered, Ripple, and LMAX Group must complete the required documentation, testing, and approvals before the collateral integration can become operational. The companies have not announced a launch date for that phase.
For now, the confirmed development is Standard Chartered’s live custody support for RLUSD on XRPL through its DIFC branch. The planned collateral arrangement remains a separate step.
What This Means for You: RLUSD holders have not been given a new retail trading feature through this announcement. The immediate development targets eligible institutional clients, with Standard Chartered providing custody and a future LMAX integration intended to let clients use RLUSD as collateral without transferring the tokens directly to the trading venue. The main point to watch is whether the planned collateral service launches and attracts institutional use.
