Standard Chartered’s RLUSD custody service is live on the XRP Ledger (XRPL) as of October 12, 2026, giving eligible institutional clients access to the bank’s digital asset custody infrastructure. A planned collaboration with Ripple and LMAX Group would also let clients use the stablecoin’s value as trading collateral without transferring the underlying tokens directly to the trading venue.
Key takeaways
- RLUSD custody is available through the bank’s DFSA-regulated DIFC Branch.
- The planned LMAX integration uses collateral mirroring rather than direct token transfers.
- Further capabilities require documentation, testing, approvals and jurisdictional readiness.
Standard Chartered said in a press release that it is working with Ripple and LMAX Group to make Ripple USD (RLUSD) eligible collateral for agreed LMAX products and solutions. Custody is already available; the collateral integration remains subject to implementation conditions.
The arrangement brings together the bank’s custody capabilities and LMAX Group’s institutional trading infrastructure. The parties expect it to give institutions more flexibility in holding and deploying digital assets, while improving capital efficiency and the management of counterparty exposure.
Standard Chartered’s RLUSD custody is available through its DIFC Branch
Operating this institutional service is Standard Chartered Bank’s DIFC Branch, a body regulated by the Dubai Financial Services Authority (DFSA). Eligible clients can use the bank’s custody infrastructure for RLUSD issued on the XRP Ledger.
The XRPL is a public blockchain built for fast, secure and efficient financial transactions. The release describes it as supporting low-cost settlement and the movement of RLUSD between institutional counterparties, including trading and collateral workflows.
Waqar Chaudry, the bank’s Global Head of Digital Assets, Securities Services, Transaction Services, described safeguarding assets and managing risk as central client requirements.
“Institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed,” Chaudry said.
RLUSD collateral integration with Ripple and LMAX Group
The planned integration would enable RLUSD to serve as eligible collateral for agreed LMAX Group trading and collateral-management products. It extends the bank’s collateral mirroring model to LMAX’s institutional market infrastructure.
Under that model, the value of eligible RLUSD collateral would be mirrored to LMAX Group, without requiring clients to send the underlying tokens directly to the trading venue. The bank expects this approach to reduce transfer-related operational risk, optimize counterparty exposure and improve capital efficiency.
Luke Dorney, LMAX Group’s Head of Custody, Digital Assets, said adopting the model would provide clients with greater flexibility in holding and deploying RLUSD across its cross-asset marketplace while supporting institutional custody and risk-management standards. LMAX operates institutional execution venues and provides custody and market-data access across FX and digital assets.
Ripple’s SVP, Stablecoins, Jack McDonald, linked the arrangement to demand for regulated stablecoins paired with trusted custody standards. “RLUSD was built for exactly this kind of institutional use case,” he said.
Further capabilities remain subject to approvals and testing
Standard Chartered’s RLUSD custody launch does not mean the planned collateral capabilities are fully implemented. Before becoming available, these capabilities still require final documentation and successful testing, compliance with applicable laws and regulations, internal approvals, and readiness within each jurisdiction.
The company said further details will be announced as implementation progresses.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.