Standard Chartered offers RLUSD custody in Dubai and plans LMAX collateral link
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Summary
Standard Chartered's Dubai branch now offers regulated institutional custody of Ripple’s USD-pegged RLUSD stablecoin on the XRP Ledger. The bank, in partnership with LMAX Group, plans to allow clients to use RLUSD held at Standard Chartered as trading collateral on LMAX’s platform, pending testing, regulatory approval, and documentation. This arrangement supports Ripple’s goal to position RLUSD as an institutional settlement and collateral asset and expands Standard Chartered’s digital asset custody services.
Why it matters
According to Standard Chartered, this development addresses institutional clients' demand to participate in digital asset markets while maintaining secure asset custody and risk management. The use of RLUSD as collateral without transferring the stablecoin to the trading venue separates custody from execution, which may attract banks, funds, and institutions reluctant to leave assets on trading platforms. The source highlights that regulated custody by a global systemically important bank is becoming critical infrastructure in digital assets.
Key context
Ripple aims to establish RLUSD as both a settlement and collateral asset for institutions and previously provided LMAX with $150 million in financing to integrate RLUSD into LMAX’s infrastructure, including institutional trading. Standard Chartered has been expanding its custody operations globally, having recently acquired Zodia Custody and announcing plans for expanded institutional custody in Singapore and Hong Kong.
Key numbers and entities
Standard Chartered Bank (managing nearly $450 billion in assets), Ripple, RLUSD stablecoin on the XRP Ledger, LMAX Group, Joseph Goh (head of Asia-Pacific at Areta), and Waqar Chaudry (Standard Chartered’s global head of digital assets) are central entities mentioned. Ripple provided $150 million in financing to LMAX in January.
What remains unclear
The timing for the launch of RLUSD as collateral on LMAX remains uncertain, as it depends on further testing, regulatory requirements, documentation, and internal approvals. Details on which institutional clients are eligible and precise custody and risk management protocols were not provided. The source does not specify how widespread RLUSD use as collateral might become.