Standard Chartered Adds RLUSD Custody on XRP Ledger

what happened

Standard Chartered has started offering institutional custody for Ripple USD (RLUSD) on the XRP Ledger. The Block reported, citing a Monday statement from the bank, that the service is already available through its Dubai International Financial Centre (DIFC) branch, which operates under the Dubai Financial Services Authority (DFSA). Eligible clients can hold and manage RLUSD through the bank’s digital-asset custody infrastructure.

The bank is working with Ripple and LMAX Group to make RLUSD acceptable collateral for selected LMAX products. Under the proposed collateral mirroring model, the value of qualifying assets would be reflected at LMAX while the underlying tokens remain with the custodian rather than being sent to the trading venue. The arrangement still needs final documentation, testing, regulatory steps and internal approvals, and no launch date has been set. LMAX said the structure would give clients more flexibility in holding and deploying RLUSD.

Standard Chartered’s Waqar Chaudry said institutions want access to digital-asset markets without weakening asset protection or risk controls. Ripple’s Jack McDonald said RLUSD was designed for this type of institutional use. The bank is also broadening its custody network: its Singapore unit plans to introduce institutional crypto custody by the end of this year, while operations already cover the UAE, Luxembourg and Hong Kong. In May, Standard Chartered said its non-binding offer for Zodia Custody had been accepted; in June, Zodia obtained a payment institution licence in Luxembourg.

why it matters

The development adds another institutional custody and collateral link for a stablecoin on the XRP Ledger. It may make RLUSD easier to use within trading infrastructure, although the LMAX arrangement remains subject to approvals and testing.

instruments