Standard Chartered starts RLUSD custody on XRP Ledger
Standard Chartered now holds Ripple’s RLUSD on the XRP Ledger for institutions, while a planned LMAX link could let clients use tokens as trading collateral.
Onchain Report Newsroom#41796d2 min read
Standard Chartered has launched custody for Ripple’s RLUSD on the XRP Ledger, giving eligible institutions a bank custody option for the stablecoin. The service is live through the bank’s Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority, Standard Chartered said in its announcement on Oct. 12.
Custody means holding digital assets for clients. RLUSD is Ripple USD, its stablecoin. The bank’s announcement also sets out a planned arrangement with Ripple and LMAX Group that could connect those holdings to trading.
How could RLUSD work as LMAX collateral?
Under the planned arrangement, Standard Chartered would mirror the value of eligible RLUSD to LMAX Group for use as collateral on agreed products. Collateral is an asset set aside to support a trade.
The tokens would stay in Standard Chartered’s custody instead of moving to the trading venue. The bank says this could give institutions more flexibility and help reduce transfer-related operational risk and counterparty exposure—the risk that another party in a trade fails to meet its obligations.
Can institutions use the LMAX link now?
No. RLUSD custody is live, but the collateral arrangement is still planned. Standard Chartered said it depends on final documentation, successful testing, applicable laws and regulations, internal approvals and readiness in each jurisdiction.
The bank has not announced when the added collateral capabilities will launch. Until then, institutions can access custody for eligible clients through the DIFC branch, but the announcement does not say that RLUSD can already be used as collateral on LMAX.
What does the launch change for institutions?
It gives eligible institutions access to RLUSD custody through a bank’s digital asset infrastructure. If the LMAX arrangement goes ahead, clients could use the value of RLUSD for certain trading products while the tokens remain with the custodian.
That setup is designed to connect safekeeping with trading without sending the underlying tokens to the venue. Its reach will depend on the products and jurisdictions covered once the parties complete the required steps. Standard Chartered, Ripple and LMAX said they will share further details as implementation progresses.