Standard Chartered, which has recently attracted attention with its analyses of various altcoins beyond Bitcoin and Ethereum, has made a move regarding Ripple.
According to The Block, Standard Chartered has launched institutional custody services for Ripple’s stablecoin RLUSD through its Dubai International Financial Centre branch.
Institutional Custody Service for RLUSD Launched!
At this point, Standard Chartered announced that it was expanding its XRP Ledger-based stablecoin infrastructure by launching institutional custody services for RLUSD.
According to the statement, the service is provided through the bank’s Dubai International Financial Centre (DIFC) branch. DIFC allows eligible corporate clients to hold their digital assets in the bank’s custody infrastructure.
The bank also added that it is working with Ripple and LMAX Group to make RLUSD acceptable as collateral under its Collateral Mirroring model. According to the bank, another aspect of this work involves extending Standard Chartered’s existing Collateral Mirroring model to LMAX Group.
This model aims to allow assets to be held in a custodian institution while the corresponding balances can be used as collateral on the trading platform. This enables institutions to access liquidity and reduce counterparty risk without transferring their assets to trading platforms.
What Does This Mean for the Institutional Cryptocurrency Market?
This development has the potential to expand RLUSD’s use in institutional custody, collateral, and transaction processes. The previously announced partnership between Ripple and LMAX Group also aims to increase the stablecoin’s use in institutional markets.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, stated: “RLUSD was developed specifically for these types of institutional use cases. Our clients want the efficiency of a regulated stablecoin without sacrificing the custody standards they already trust. Combining RLUSD on the XRP Ledger with Standard Chartered’s custody capabilities and LMAX Group’s institutional transaction infrastructure creates a practical way for institutions to use stablecoins in global markets.”
*This is not investment advice.
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