Standard Chartered has launched institutional custody for Ripple USD (RLUSD) issued on the XRP Ledger, the bank announced on October 12. The service allows eligible institutions to safeguard the dollar-backed stablecoin through Standard Chartered's digital asset infrastructure operated from its Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority.
The custody offering marks an expansion of Standard Chartered's digital asset business, which launched in the United Arab Emirates in September 2024 initially supporting bitcoin and ether. RLUSD custody extends the range of assets institutions can place with the bank.
Collateral Integration in Development
A separate planned integration with institutional trading infrastructure operator LMAX Group would make RLUSD eligible as collateral for agreed LMAX products and services. Under a proposed collateral mirroring model, the value of eligible RLUSD holdings would be recognized by LMAX without requiring institutions to transfer the underlying tokens to the trading venue. Standard Chartered would maintain custody while LMAX recognizes the mirrored collateral value.
The structure is designed to reduce operational risks associated with asset transfers and improve capital efficiency by allowing holdings to support trading while remaining within the bank's custody framework.
This collaboration builds on a multiyear Ripple-LMAX partnership announced in January, which included $150 million in financing commitments. That agreement covered several trading products; the new initiative extends the collateral mirroring model to LMAX.
Regulatory and Reserve Structure
RLUSD operates under multiple layers of oversight. The stablecoin is issued through Ripple subsidiary Standard Custody & Trust Company, which holds a New York trust charter and is supervised by the New York Department of Financial Services. The dollar reserves backing RLUSD are segregated and subject to independent attestations.
In July 2025, Ripple selected BNY as RLUSD's primary reserve custodian, a separate function from Standard Chartered's custody of institutional token holdings.
Implementation Status
The planned collateral capabilities remain subject to final documentation, successful testing, applicable laws and regulations, internal approvals, and jurisdictional readiness. The parties indicated they will announce further details as implementation progresses.
