Standard Chartered has launched institutional custody services for Ripple’s USD-pegged RLUSD stablecoin on the XRP Ledger via its Dubai branch, providing eligible clients with a regulated banking option to securely hold the dollar-denominated asset.
The bank, which manages close to $450 billion in assets, intends to collaborate with Ripple and LMAX Group — an institutional trading platform for forex and digital assets — to enable clients to utilize RLUSD held in Standard Chartered’s custody as collateral for trades on LMAX. However, this feature is not yet operational and remains pending finalization of documentation, testing, regulatory clearances, and internal approvals, as communicated by the bank in an email on Monday.
LMAX aims to permit clients to leverage RLUSD stored with Standard Chartered as collateral for their trades, eliminating the need to move the stablecoin to the trading venue.
This approach may attract banks, funds, and other institutions seeking to trade stablecoins without relinquishing custody of their assets to the trading venue. It effectively decouples custody from execution: Standard Chartered safeguards the tokens, while LMAX recognizes their value as acceptable collateral.
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