Standard Chartered has launched institutional custody services for Ripple’s dollar-backed stablecoin, RLUSD, on the XRP Ledger. According to the bank’s October 12 announcement, eligible institutional clients can now hold their RLUSD through its digital asset custody infrastructure. Standard Chartered is also working with Ripple and LMAX Group to enable the stablecoin’s use as trading collateral.
RLUSD collateral integration is in development
The bank offers the service through its Dubai International Financial Centre (DIFC) branch. The branch operates under the supervision of the Dubai Financial Services Authority (DFSA).
In the next phase of the collaboration, the parties aim to make RLUSD eligible collateral for agreed LMAX products. The planned “collateral mirroring” model would reflect the value of RLUSD held at the bank on the trading platform.
This would allow institutions to use their tokens as collateral without transferring them directly to the trading venue. The partners aim to reduce transfer-related operational risks, improve counterparty risk management, and increase capital efficiency.
However, the custody service and collateral integration are at different stages. Custody support is now live, while the collateral model remains subject to final documentation, successful testing, internal approvals, and applicable regulatory requirements.
Standard Chartered said it would share further details as implementation progresses. The announcement therefore does not mean institutional clients have already begun using RLUSD as collateral for LMAX trades.
The LMAX partnership expanded in September
The new service follows the growing digital asset collaboration between Standard Chartered and LMAX Group. On September 16, the bank announced its appointment as LMAX Group’s digital asset custodian.
That agreement covered Standard Chartered’s DIFC branch and its Luxembourg entity. LMAX became the first client to join the bank’s Luxembourg digital asset custody platform following its MiCA authorization in June 2026.
In July, the two companies also executed transactions combining banking, credit, and custody capabilities with institutional digital asset trading infrastructure. The September announcement outlined an expansion aimed at serving institutional clients across the Middle East and Europe.
At the time, the partners also said they were exploring solutions that would provide access to market liquidity while keeping assets in bank custody. Against this backdrop, the RLUSD announcement marks another stage in their efforts to connect custody with trading collateral.
How do RLUSD’s reserves and custody arrangements work?
According to Ripple’s technical documentation, RLUSD is backed one-to-one by dollars and eligible cash equivalents. Its reserves can include short-term U.S. Treasury bills, government money market funds, certain overnight reverse repurchase agreements, and bank deposits.
The company publishes monthly independent attestation reports covering circulating RLUSD and its backing reserves. Reserve assets are held in segregated accounts, while institutions accessing direct issuance and redemption services undergo identity verification and anti-money laundering checks.
Custody of the reserves backing RLUSD is a separate service from custody of the tokens held by clients. On July 9, 2025, Ripple announced that it had selected BNY as the primary custodian of RLUSD’s reserves.
That agreement focused on the reserve assets backing the stablecoin. Ripple also said it would use BNY’s transaction banking services to support its operations.
Standard Chartered’s latest announcement covers custody of institutional clients’ RLUSD issued on the XRP Ledger. Once the planned LMAX integration is complete, those assets could also serve as trading collateral while remaining in custody.
