Standard Chartered has launched institutional custody for Ripple USD (RLUSD), Ripple's US dollar-backed stablecoin, on the XRP Ledger (XRPL), with the service operating through the London-headquartered bank's Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority (DFSA). The bank is simultaneously working with Ripple and LMAX Group to integrate RLUSD into trading collateral workflows while the tokens remain in custody, as detailed in an official press release.

Standard Chartered Activates RLUSD Custody

The service gives eligible institutional clients access to Standard Chartered's digital asset custody infrastructure. Custody — the safeguarding of digital assets on a client's behalf by a regulated institution — mirrors the role banks have long played in safeguarding securities and cash. Stablecoins such as RLUSD are digital tokens designed to hold a steady value against a reference asset, typically the US dollar. Alongside the launch, the bank is working with Ripple and LMAX Group to make RLUSD eligible collateral for agreed products and services.

Under the planned arrangement, clients could hold RLUSD in custody while using its value to support trading activities on LMAX Group's marketplace, without needing to transfer the underlying stablecoin directly the trading venue. According to Standard Chartered, the structure is designed to reduce transfer-related operational risks, manage counterparty exposure and improve capital efficiency. These capabilities remain subject to implementation requirements.

Ripple and LMAX Set Out Institutional Plans

Jack McDonald, Ripple's senior vice president of stablecoins, said institutions want regulated stablecoins without sacrificing trusted custody standards. He said combining RLUSD on XRPL, Standard Chartered's custody capabilities and LMAX Group's trading infrastructure creates a route for institutional stablecoin use across global markets.

Luke Dorney, head of custody at LMAX Group, said the company had agreed to adopt Standard Chartered's collateral model. He said the arrangement would give clients more flexibility when holding and deploying RLUSD across its cross-asset marketplace.

Waqar Chaudry, Standard Chartered's global head of digital assets, securities services and transaction services, said institutions need secure custody, liquidity access and efficient collateral management. He added that integrating the companies' capabilities could help clients use digital assets within broader financial activities.

Implementation Remains Subject to Approvals

The planned collateral capabilities still require final documentation, successful testing, internal approvals and readiness across relevant jurisdictions. The companies must also meet applicable laws and regulations before implementation. Standard Chartered said it would announce further details as the work progresses. Until those steps are completed, custody in Dubai is live while the collateral capability remains planned.

The XRP Ledger is a public blockchain designed for fast, secure and efficient financial transactions. It provides the infrastructure for RLUSD transfers between institutional counterparties and across trading and collateral workflows.