Global banking giant Standard Chartered announced institutional support for Ripple USD (RLUSD) in Dubai as financial firms continue their stablecoin drive. The bank is also working on a partnership between LMAX Group and Ripple to let customers use RLUSD as eligible collateral.
Standard Chartered Expands Stablecoin Offerings
In a recent press release, the bank disclosed new digital asset services for institutional clients and an ongoing plan still in development. Standard Chartered will offer a dollar-pegged asset to institutional investors in Dubai, allowing them to trade without a centralized exchange.
The DIFC branch offers the service and handles a key part of institutional crypto trading. Custody has been a recurring theme for financial firms entering the digital asset market. Meanwhile, holders, especially whales, have shown a preference for institutional custody because it lowers associated risks.
Waqar Chaudry, Global Head of Digital Assets at Standard Chartered, echoed similar sentiments, pointing to overall market safety and how assets are deployed.
“Institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed. The ecosystem must therefore make it easier for clients to hold assets securely, access liquidity and deploy collateral efficiently within trusted frameworks.”
The bank also plans to integrate with LMAX Group to make RLUSD eligible for certain LMAX products. This stage aims to combine its institutional-grade market structure with the bank’s custody capabilities.
Overall, institutional investors will have added flexibility because the platform mirrors the value of eligible collateral without transferring the RLUSD. Per the announcement, it reduces transfer-related operational costs while improving capital efficiency.
“By agreeing to adopt Standard Chartered’s collateral mirroring model, we are providing clients with greater flexibility in how they hold and deploy RLUSD across our cross-asset marketplace, while supporting the custody and risk management standards institutions expect,” Luke Dorney, Head of Custody, Digital Assets, LMAX Group, noted.
This partnership remains subject to testing, regulations, and other requirements, but it could change how those institutional clients handle cryptocurrencies. XRP holders have lauded the bank and other partners since the stablecoin launched in 2024.
Stablecoins remain a major entry point for major traditional finance firms, offering safer options while acting as bridge assets. Last year, several firms launched new offerings and pilots citing the need to explore new global payment systems.