Standard Chartered has launched institutional custody services for Ripple USD (RLUSD), the U.S. dollar-backed stablecoin issued by Ripple, on the XRP Ledger, extending its digital asset services across the United Arab Emirates. The offering is delivered through the bank's branch in the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority. The DIFC operates as a financial free zone with its own legal framework and independent regulator, a structure that has made it a base for international banks and financial firms in the region.

Alongside the custody launch, Standard Chartered is working with Ripple and LMAX Group to make RLUSD eligible as collateral for selected LMAX products. The proposed arrangement is designed to give institutional clients an additional way to deploy stablecoins in trading activities while keeping their assets under established custody arrangements. It combines the bank's institutional custody services, Ripple's stablecoin and LMAX Group's trading infrastructure to broaden the use of digital assets as collateral in institutional markets.

The planned integration builds on Standard Chartered's collateral mirroring model, which allows the value of eligible assets held in custody to be reflected at a trading venue without the underlying assets being transferred directly to that venue. The arrangement remains subject to final documentation, technical testing, regulatory requirements and internal approvals, and the companies have not announced a launch date for the collateral service.

Collateral mirroring targets institutional demand

Under the proposed model, eligible RLUSD held with Standard Chartered would have its value mirrored to LMAX Group for use as collateral in supported products. The structure is intended to separate asset custody from trading access, potentially allowing institutions to manage collateral without moving the underlying stablecoins onto the trading platform.

Comparable structures exist in traditional markets, where collateral held with a custodian or tri-party agent can support trading positions without being delivered to the venue itself. The approach could offer institutional investors greater flexibility in managing digital asset holdings, accessing liquidity and meeting collateral requirements. It also reflects a wider effort by financial institutions to adapt established custody and risk-management practices to digital asset markets.

Waqar Chaudry, Standard Chartered's global head of digital assets, said institutional clients wanted to participate in digital asset markets while maintaining appropriate safeguards for their holdings and effective risk controls. He highlighted the need for infrastructure that enables secure asset storage, access to liquidity and more efficient collateral deployment.

Jack McDonald, Ripple's senior vice president of stablecoins, said RLUSD was developed to support institutional use cases. He indicated that combining the stablecoin's availability on the XRP Ledger with Standard Chartered's custody capabilities and LMAX Group's trading infrastructure could help institutions use stablecoins across international markets.

RLUSD is designed to maintain a value equivalent to one U.S. dollar. Its potential use as collateral would add another application beyond payments and transfers, although eligibility will depend on the products supported and the completion of the planned integration.

Standard Chartered widens its custody footprint

The Dubai launch forms part of Standard Chartered's broader expansion into institutional cryptocurrency custody. In early October 2026, the bank's Singapore unit announced plans to introduce institutional crypto custody services by the end of the year. That offering would extend the bank's existing custody presence in the United Arab Emirates, Luxembourg and Hong Kong.

The expansion reflects growing efforts by traditional financial institutions to provide regulated infrastructure for clients seeking exposure to digital assets. Institutional custody services are designed to safeguard digital assets and support operational requirements such as transaction processing, asset administration and risk management. Such services can be important for investment firms and trading businesses that require established controls when handling cryptocurrencies and stablecoins.

Zodia Custody relationship undergoes changes

Standard Chartered has also been reassessing its relationship with Zodia Custody, the institutional digital asset custodian it established jointly with Northern Trust in 2020. In April 2026, reports indicated that the bank was considering integrating parts of Zodia into its corporate banking division. The following month, Standard Chartered said a nonbinding offer had been accepted, although available information did not establish that the proposed restructuring had been completed.

Zodia has operated in Singapore since September 2023 and subsequently expanded into Hong Kong. In June 2026, the company secured a payment institution license in Luxembourg, enabling it to provide regulated stablecoin custody and transfer services across the European Union.

Standard Chartered's expanding custody footprint and its planned RLUSD collateral arrangement underscore the growing convergence of traditional banking infrastructure, stablecoins and institutional digital asset trading. The extent of adoption will depend on regulatory approvals, operational readiness and institutional demand for using stablecoins in collateral management.