Eligible institutions can now hold Ripple USD ($RLUSD), the dollar-backed stablecoin issued on the XRP Ledger (XRPL), in Standard Chartered's custody. The London-headquartered international bank announced on Oct. 12 that its institutional $RLUSD custody service is live, giving clients access to its digital asset infrastructure.

Custody involves safeguarding assets on behalf of their owners, while the XRPL is a public blockchain that supports financial transactions. The newly supported asset belongs to the stablecoin category — digital assets designed to maintain a stable value by tracking reference assets such as the U.S. dollar. For institutions, where a digital asset is held — and under whose regulatory oversight — shapes how it fits within existing risk and compliance processes.

Jack McDonald, senior vice president of stablecoins at Ripple, said:RLUSD was built for exactly kind of institutional use case. Our customers want the efficiency of a regulated stablecoin without giving up the custody standards they already trust."

Delivered Through Dubai's DIFC

Standard Chartered provides the $RLUSD custody offering through its Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority (DFSA). The DIFC is Dubai's dedicated financial free zone, operating under its own legal and regulatory framework. The launch combines the bank's safekeeping capabilities with Ripple's stablecoin and establishes the custody component of a broader collaboration involving LMAX Group, an operator of institutional trading infrastructure.

Collateral Mirroring Without Token Transfers

Under a separate planned integration, $RLUSD would become eligible collateral — an asset pledged to secure financial obligations — for agreed LMAX products and services. The proposed collateral mirroring model would reflect the value of eligible holdings at LMAX without requiring institutions to transfer the underlying $RLUSD directly to the trading venue. In conventional collateral arrangements, posting assets to a trading venue generally requires moving them out of an existing custody relationship, a step that introduces transfer and settlement considerations. Standard Chartered would provide custody, while LMAX would recognize the mirrored collateral value for agreed products and services. LMAX operates institutional trading infrastructure for foreign exchange and digital assets.

The companies expect the structure to reduce operational risks associated with transfers and improve how institutions manage exposure to counterparties, the other parties in financial transactions. They also anticipate greater capital efficiency, allowing eligible holdings to support trading while remaining within the bank's custody framework. Those benefits depend on successful implementation of the planned capabilities.

The collaboration builds on a multiyear Ripple-LMAX partnership involving $150 million in financing announced Jan. 15. Under that agreement, Ripple committed to provide financing for LMAX's growth strategy, while LMAX planned to integrate $RLUSD as a core collateral asset. The earlier arrangement covered several trading products; the new initiative extends the bank's collateral mirroring model to LMAX.

Custody Business Expands, With Implementation Still Ahead

The $RLUSD launch extends a custody business that Standard Chartered established in the United Arab Emirates in September 2024. Its initial service supported bitcoin and ether, with Brevan Howard Digital, the crypto and digital asset division of investment manager Brevan Howard, as the inaugural customer. Adding custody for $RLUSD broadens the range of assets institutions can safeguard through the bank's digital asset infrastructure.

Ripple has also developed banking relationships involving the reserves that support its stablecoin's dollar value — a separate custody function. In July 2025, it selected BNY, the New York-headquartered custody bank, as $RLUSD's primary reserve custodian. Reserve custody concerns the backing assets, whereas Standard Chartered's new offering safeguards eligible institutions' $RLUSD tokens issued on the XRP Ledger.

The issuer's regulatory structure provides another layer of oversight alongside the arrangements for safeguarding tokens and backing assets. $RLUSD's New York trust charter and reserve safeguards include issuance through Ripple subsidiary Standard Custody & Trust Company, supervision by the New York Department of Financial Services, segregated reserves, and independent attestations examining reserve disclosures.

The future collateral capabilities remain subject to final documentation, successful testing, applicable laws and regulations, internal approvals, and jurisdictional readiness. The parties will announce further details as implementation progresses.