Standard Chartered Adds Institutional Custody for Ripple’s RLUSD, Explores LMAX Collateral Use
Summary
- Standard Chartered said it is expanding XRP Ledger-based stablecoin infrastructure by launching institutional custody services for RLUSD.
- Standard Chartered, Ripple and LMAX Group said they are pursuing a plan to recognize RLUSD as eligible collateral for some products and services.
- Standard Chartered said its collateral mirroring model could reduce operational and counterparty risk and improve capital efficiency when RLUSD is used as collateral.
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Standard Chartered has started offering institutional custody for Ripple’s dollar-backed stablecoin RLUSD and is exploring plans to use the token in LMAX Group’s trading and collateral management operations.
MarketScreener reported on October 12 that Standard Chartered has launched institutional custody for RLUSD, which is issued on the XRP Ledger, or XRPL. The service is being offered through Standard Chartered’s DIFC branch, which is regulated by the Dubai Financial Services Authority.
Standard Chartered, Ripple and LMAX Group are also exploring a plan to recognize RLUSD as eligible collateral for some of LMAX Group’s products and services.
The bank plans to apply its collateral mirroring model to LMAX Group. Under that structure, clients’ RLUSD would remain in custody at Standard Chartered instead of being transferred directly to an exchange, while the asset’s value would be reflected by LMAX as collateral.
That would allow institutional investors to use crypto as trading collateral without moving the assets separately, reducing operational and counterparty risk tied to transfers while improving capital efficiency.
“Institutional clients want to participate in digital-asset markets without compromising asset protection and risk management standards,” said Waqar Chaudry, Standard Chartered’s global head of digital assets. Through its work with Ripple and LMAX, the bank will help clients use digital assets more securely in financial activity, he added.
Jack McDonald, Ripple’s senior vice president of stablecoins, said RLUSD was designed for that kind of institutional use case. He said combining XRPL-based RLUSD with Standard Chartered’s custody capabilities and LMAX’s institutional trading infrastructure would help build a foundation for practical stablecoin use in global markets.
RLUSD’s future use as collateral will be introduced after final agreements, testing, regulatory review and internal approvals are completed.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.