Standard Chartered has expanded its digital asset offerings by enabling institutional custody for Ripple USD (RLUSD) on the XRP Ledger. The service is currently available through the bank’s Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority.
Institutional RLUSD Custody Now Live
Institutions that meet eligibility criteria can access RLUSD custody using Standard Chartered’s digital asset infrastructure. This development marks a significant move by the London-based multinational bank, known for its global reach and regulatory credentials, into supporting tokenized USD on the XRP blockchain network.
Standard Chartered is also collaborating with Ripple, the blockchain payments technology company behind RLUSD, and LMAX Group, a major institutional exchange operator. The partnership aims to allow RLUSD to serve as eligible collateral for LMAX Group’s trading and settlement products.
The newly introduced model lets clients mirror the value of RLUSD as collateral with LMAX Group without having to transfer the stablecoin directly to the exchange. This arrangement is intended to deliver operational efficiencies by reducing asset transfer risks, enhancing capital efficiency, and providing participants with greater flexibility in deploying digital assets for trading and settlement.
Mini dictionary: RLUSD, or Ripple USD, is a stablecoin backed 1:1 by the US dollar, designed for fast and regulated settlements on the XRP Ledger, tailored for institutional use.
Institutional Integration: Collaboration with LMAX Group and Ripple
Waqar Chaudry, Global Head of Digital Assets at Standard Chartered, emphasized that regulated custody for RLUSD aims to build the confidence institutions need to integrate stablecoins into broader financial activity.
Waqar Chaudry described the initiative as “helping clients incorporate digital assets more confidently into their broader financial activities,” highlighting the importance of placing regulated stablecoins in a trusted custody environment.
LMAX Group confirmed it has adopted Standard Chartered’s collateral mirroring framework, enabling its global client base—which includes funds, banks, asset managers, and buy-side institutions in over 100 countries—to use RLUSD across its cross-asset trading platforms without needing to handle direct token transfers.
Luke Dorney, Head of Custody and Digital Assets at LMAX Group, stated that the model gives clients greater flexibility in managing RLUSD for collateral within LMAX solutions.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, explained that RLUSD “was built for exactly this kind of institutional use case,” positioning the stablecoin, XRP Ledger, Standard Chartered’s custody network, and LMAX’s trading infrastructure as an integrated pathway for capital markets adoption.
Expanding Role for XRP Ledger
As RLUSD adoption expands for institutional collateral and settlement through major banks and trading venues, the underlying XRP Ledger and its native asset, XRP, gain further credibility in global finance. The ability to utilize RLUSD across regulated infrastructure could help drive more activity on the XRPL and unlock new use cases for both XRP and institutional-grade stablecoins.
Combining RLUSD on the XRP Ledger, Standard Chartered’s custody capabilities, and LMAX’s trading infrastructure creates a practical route for institutions to leverage stablecoins in global markets.
Regulatory and Implementation Considerations
Standard Chartered’s integration of RLUSD comes with regulatory oversight, placing the stablecoin in an environment familiar to large-scale institutional clients. Future collateral-related capabilities are subject to standard documentation, industry testing, and regulatory checks. More information is anticipated as these processes progress.
X Finance Bull, a well-known crypto commentator, noted the potential implications for XRP as RLUSD becomes more deeply embedded in institutional workflows. This move is seen as part of a broader trend toward the convergence of traditional and digital finance within regulated frameworks.
