Standard Chartered has launched institutional custody for Ripple's RLUSD stablecoin on the XRP Ledger. The bank is also working with Ripple and LMAX Group on a plan to accept RLUSD as collateral, though no launch date has been announced.
Standard Chartered launched institutional custody for Ripple USD on the XRP Ledger, as the bank keeps expanding its crypto-related services. The bank said in a Monday statement that RLUSD custody is now live through its DIFC branch, which the Dubai Financial Services Authority regulates.
Collateral plan with Ripple and LMAX
The bank is working with Ripple and LMAX Group to make RLUSD eligible collateral for certain LMAX products under a collateral mirroring model. Under that model, the value of eligible RLUSD would be mirrored to LMAX Group without moving the underlying assets to the trading venue.
Standard Chartered said the arrangement could reduce transfer-related risks and help institutions manage exposure to trading counterparties. However, the integration remains subject to final documentation, testing, regulatory requirements and internal approvals, and no launch date has been announced.
Executives frame the move for institutions
Standard Chartered said the arrangement is expected to "give institutional clients greater flexibility" in how they hold and trade crypto assets. Jack McDonald, Ripple's SVP for stablecoins, said RLUSD was built for this kind of institutional use case.
Ripple and LMAX Group had already announced a partnership in January 2026 to expand institutional use of the stablecoin.
Custody footprint keeps growing
Last week, the bank's Singapore unit said it plans to launch institutional crypto custody services by the end of this year. That would extend its existing custody footprint in the UAE, Luxembourg, and Hong Kong.
Sources: The Block, Cointelegraph
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