Cryptoupdated 47m ago2 min read
Standard Chartered Launches RLUSD Custody in Dubai, Plans LMAX Collateral Link
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Standard Chartered launches institutional RLUSD custody on the XRP Ledger via DIFC Dubai. Plan to use RLUSD as eligible collateral without transferring it.
16 outlets told this the same way.
Dubai custody goes live
Standard Chartered launched institutional custody for Ripple’s USD-pegged RLUSD stablecoin on the XRP Ledger through its Dubai branch, giving eligible clients a regulated bank to hold the dollar-pegged stablecoin. Standard Chartered and LMAX Group plan to let clients use RLUSD held at Standard Chartered as trading collateral on LMAX’s platform without transferring the stablecoin to the venue, while the collateral link remains subject to testing, regulatory requirements and internal approvals.
Ripple previously granted LMAX $150 million in financing in January as part of plans to integrate RLUSD into LMAX’s institutional infrastructure, including for institutional trading. Joseph Goh, head of Asia-Pacific at Singapore-based crypto investment bank Areta, said, “Regulated custody connected to a global systemically important bank is becoming one of the most valuable pieces of infrastructure in digital assets.”
How the collateral model works
Standard Chartered said its collateral mirroring model could reduce operational and counterparty risk and improve capital efficiency when RLUSD is used as collateral. Waqar Chaudry, Standard Chartered’s global head of digital assets, securities services and transaction services, said, “institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed.”
Jack McDonald, Ripple’s senior vice president of stablecoins, said RLUSD was designed for institutional use cases, adding that combining XRPL-based RLUSD with Standard Chartered’s custody capabilities and LMAX’s institutional trading infrastructure would help build a foundation for practical stablecoin use in global markets. Standard Chartered said the collateral capabilities would be introduced after final agreements, testing, regulatory review and internal approvals are completed.
What comes next for institutions
Standard Chartered said the custody service is operational through its DIFC branch in Dubai, while the LMAX collateral integration is not yet live and depends on documentation, testing, regulatory requirements and internal approvals. The bank said the arrangement would separate custody from execution, with the bank holding the tokens and the trading venue accepting their value as collateral.
The plan would give institutions greater flexibility to hold and deploy RLUSD while keeping custody and risk management standards in place, and it would allow clients to use RLUSD as collateral without needing to transfer the stablecoin to the trading venue. Standard Chartered’s RLUSD custody launch also followed the bank’s broader expansion of custody operations in several financial hubs, including its plan to offer institutional clients in Singapore custody for selected cryptocurrencies, stablecoins and tokenized real-world assets.