Standard Chartered has launched institutional custody services for Ripple's RLUSD stablecoin on the XRP Ledger, giving qualified institutional buyers access to the bank's digital asset custody platform. The bank is also working with Ripple and LMAX Group on a planned system that would let clients use the token as trading collateral.

Standard Chartered Expands RLUSD Custody Services

According to the bank's announcement on October 12, RLUSD custody is now available through Standard Chartered's branch in the Dubai International Financial Centre, which is licensed by the Dubai Financial Services Authority. The Dubai International Financial Centre is Dubai's financial free zone, operating under its own legal framework with the DFSA as its independent regulator — an arrangement that allows international financial institutions to serve clients from a Dubai base. Under the offering, qualified clients are able to store their stablecoins within the bank's custody system.

News of the launch was highlighted by market intelligence account MSB Intel on X:

BREAKING: Standard Chartered has launched institutional custody for Ripple's RLUSD on the XRP Ledger, through its DFSA-regulated Dubai branch. It also plans to let clients use RLUSD held in its custody as trading collateral at LMAX Group. @Ripple pic.twitter.com/z3SMCUhR1k

— MSB Intel (@MSBIntel) October 12, 2026

RLUSD is a stablecoin launched by Ripple that is designed to maintain a value of $1. Unlike Bitcoin, stablecoins seek to limit price changes by linking their value to traditional currencies such as the US dollar. As a result, they can be used to facilitate payments, digital asset trading, and other financial transactions. RLUSD belongs to a broader category of dollar-pegged digital tokens that are widely used across cryptocurrency markets.

The latest addition by Standard Chartered brings banking services to RLUSD on the XRP Ledger and links the stablecoin to financial services for institutional clients. The XRP Ledger is the open-source blockchain network on which the stablecoin is issued, and it records the token's transfers and balances. These customers — businesses and professional investors — typically require secure arrangements for both asset storage and trading.

Ripple and LMAX Group Plan RLUSD Collateral Integration

Standard Chartered is also in talks with Ripple and LMAX Group on a scheduled collateral arrangement. Under the proposed scheme, clients who meet the eligibility requirements could use RLUSD as trading collateral without moving the tokens directly onto the trading platform. The proposed system is not part of the custody service that has already been launched.

The planned arrangement is known as collateral mirroring. Under this structure, Standard Chartered would continue to hold eligible RLUSD tokens, while the value of the collateral is recognized in parallel within LMAX Group's trading systems. In practical terms, a client's holdings would remain with the bank while the trading venue reflects their value as posted collateral.

This could enable institutions to operate more efficiently with digital assets. Because clients would not have to submit their underlying RLUSD to the trading venue, the structure may help mitigate counterparty risk and reduce exposures arising from transfers.

However, the proposed integration has not yet received final approval. Before the planned launch of the collateral services, the parties must complete documentation, testing, and applicable regulatory requirements. It is therefore not guaranteed that all LMAX products will accept RLUSD.

LMAX Group is a provider of institutional trading infrastructure and services to professional market participants. Through its planned partnership with Standard Chartered and Ripple, the firm aims to integrate stablecoin custody with trading and collateral management. The agreement may also provide institutions with an additional way to deploy stablecoins within existing financial systems.

Part of a Broader Digital Asset Push

The announcement also reflects Standard Chartered's broader efforts to expand its digital asset services. The London-headquartered international banking group, whose core markets span Asia, Africa, and the Middle East, has built up its custody capabilities in markets such as the United Arab Emirates, Luxembourg, and Hong Kong, and has shared plans to extend similar institutional services to Singapore.

The partnership may help propel Ripple's institutional business, but wider adoption will rely on client demand, regulatory rules, and the successful rollout of the planned services. In the meantime, the live custody offering gives qualified institutions a new way to hold RLUSD.

Source: Live Bitcoin News