Standard Chartered launched custody services for Ripple's RLUSD stablecoin on October 12, allowing eligible institutional clients to hold the token issued on the XRP Ledger through the bank's Dubai International Financial Center branch.
The custody service is part of a broader arrangement between Standard Chartered, Ripple, and trading group LMAX that permits institutions to use RLUSD as collateral for trading positions. Under the model, the bank mirrors the value of RLUSD holdings to LMAX, enabling clients to support trading activities without transferring tokens directly to the exchange.
This structure is designed to reduce counterparty exposure and operational risks associated with moving assets between custodians and exchanges while allowing institutions to deploy capital across trading activities.
Rapid Growth in RLUSD Supply
The custody launch coincides with significant growth in RLUSD's market capitalization. During the third quarter, Ripple added $765.3 million to RLUSD's supply, the second-largest increase among stablecoins during the period, according to RWA Foundation data. Circle's USDC posted the largest increase at $915 million, followed by United Stables at $474.2 million.
RLUSD's total circulating supply has reached approximately $2.4 billion, with about $1.14 billion issued on the XRP Ledger and $1.3 billion on Ethereum, according to DeFiLlama.
Expanding Institutional Use Cases
Ripple and LMAX announced a multiyear partnership in January aimed at integrating RLUSD across trading infrastructure. Ripple committed $150 million in financing to support LMAX's expansion, with the agreement targeting RLUSD adoption across spot cryptocurrency trading, perpetual futures, contracts for difference, and other institutional products.
Standard Chartered's custody offering provides a traditional banking channel for this arrangement, allowing participating institutions to maintain custody with the bank while accessing LMAX's trading infrastructure.
Waqar Chaudry, Standard Chartered's global head of digital assets in Securities Services, stated that institutional investors increasingly seek to participate in digital asset markets while maintaining asset safeguarding and risk management standards.
Implementation Timeline Uncertain
Standard Chartered has not disclosed the amount of RLUSD held in custody or identified participating institutional clients. The companies have not announced when collateral integration will become operational, as implementation remains subject to final documentation, technical testing, regulatory requirements, and internal approvals across relevant jurisdictions.
