Major banking institution Standard Chartered has launched institutional custody support for Ripple’s native stablecoin, Ripple USD (RLUSD), on the XRP Ledger. The service is now live through the bank’s DIFC Branch in Dubai, which is regulated by the Dubai Financial Services Authority, granting eligible clients access to the bank's digital asset custody infrastructure.
Alongside the custody launch, Standard Chartered is working with Ripple and LMAX Group on a broader collateral integration designed to bring the asset deeper into institutional trading. Under the planned structure, Standard Chartered aims to make RLUSD eligible collateral for selected LMAX products and services by extending its mirroring model.
If implemented, this setup would allow the value of the stablecoin held in custody to be reflected at the trading venue without requiring the underlying assets to be transferred there. According to the collaborating parties, this approach aims to reduce transfer-related operational risk, improve counterparty exposure management, and enhance institutional capital efficiency.
Jack McDonald, Ripple's Senior Vice President of Stablecoins, stated that RLUSD was designed for institutional use cases, combining the efficiency of a regulated stablecoin with trusted custody standards.
Standard Chartered noted that the planned collateral integration is not yet live and remains subject to final documentation, testing, regulatory requirements, internal approvals, and jurisdictional readiness. Meanwhile, RLUSD has reached a market capitalization of over $2.5 billion less than two years after its debut.
