Standard Chartered launches custody for Ripple’s RLUSD stablecoin

Bank custody opens new door for Ripple’s dollar-linked token

Standard Chartered has launched custody services for Ripple’s RLUSD stablecoin, a dollar-linked digital token issued on the XRP Ledger. The move was announced on Oct. 12 and is available through the bank’s Dubai International Financial Center branch, regulated by the Dubai Financial Services Authority.

The custody launch is part of a broader arrangement with Ripple and the trading group LMAX. It would allow institutional clients to use RLUSD as collateral while keeping their tokens held by Standard Chartered, rather than moving them directly to a trading platform.

Under the proposed setup, Standard Chartered would mirror the value of eligible RLUSD holdings to LMAX. This aims to reduce counterparty exposure and operational risks that come with transferring assets between custodians and exchanges.

RLUSD supply hits $2.4 billion after strong quarter

The custody announcement comes as RLUSD posts one of the fastest growth rates among stablecoins by absolute market value added. According to the RWA Foundation, Ripple added $765.3 million in stablecoin market capitalization during the third quarter.

Only Circle’s USDC posted a larger increase, adding $915 million, while United Stables ranked third at $474.2 million.

Data from DeFiLlama shows RLUSD’s total circulating supply has reached about $2.4 billion, with roughly $1.14 billion issued on the XRP Ledger and $1.3 billion on Ethereum.

A multiyear partnership with LMAX

In January, Ripple and LMAX announced a multiyear partnership to integrate RLUSD across LMAX’s trading infrastructure. Ripple committed $150 million in financing to support the expansion.

The agreement targets RLUSD adoption across spot cryptocurrency trading, perpetual futures, contracts for difference, and other institutional products. Standard Chartered’s involvement adds a traditional banking custody channel to that arrangement.

Waqar Chaudry, Standard Chartered’s global head of digital assets in Securities Services, said institutional investors increasingly want to participate in digital asset markets without compromising asset safeguarding and risk management.

Launch timeline and client details remain unclear

Standard Chartered has not disclosed how much RLUSD it currently holds in custody or which institutional clients are participating.

The companies have also not announced when the collateral integration will become operational. Implementation remains subject to final documentation, technical testing, regulatory requirements, and internal approvals across relevant jurisdictions.

Why the custody push matters

For Ripple, accepting RLUSD as trading collateral could drive additional demand from banks, brokers, and investment firms that need dollar-denominated assets to support their positions.

However, the commercial impact will depend on how widely institutions adopt the arrangement and which LMAX products ultimately accept the stablecoin. The supply growth alone does not guarantee adoption.

Where this stands today

What is confirmed: Standard Chartered has launched custody for RLUSD through its Dubai branch, and a planned integration with LMAX is in progress. RLUSD supply has grown to about $2.4 billion.

What is still unclear: No launch date has been set for the collateral integration, and neither the custody amount nor participating clients have been disclosed.

Source

• CryptoSlate