Standard Chartered Launches Custody for Ripple's RLUSD Stablecoin on XRP Ledger

RLUSD custody goes live at Standard Chartered

Standard Chartered announced on Monday that it has launched institutional custody for Ripple USD (RLUSD) on the XRP Ledger. The service is available through the bank's DIFC branch, which is regulated by the Dubai Financial Services Authority. RLUSD is a stablecoin, a type of digital token designed to hold a steady value by pegging its price to another asset, in this case the U.S. dollar.

The bank is also working with Ripple and LMAX Group to enable RLUSD as eligible collateral for certain LMAX Group products under a collateral mirroring model. Under this arrangement, the value of RLUSD collateral would be mirrored to LMAX Group without the underlying assets being transferred directly to the trading venue. However, the planned integration remains subject to final documentation, testing, regulatory requirements, and internal approvals, and no launch date has been announced.

Key details from the announcement

• The RLUSD custody service is live and available through Standard Chartered's DIFC branch regulated by the Dubai Financial Services Authority.
• The bank is collaborating with Ripple and LMAX Group on a collateral mirroring integration.
• The integration is not yet active and depends on additional approvals and testing.
• No launch date has been set for the collateral arrangement.

What the companies said

Waqar Chaudry, global head of digital assets at Standard Chartered, said institutional clients want to participate in digital asset markets without compromising how their assets are safeguarded or how risk is managed. He noted that the ecosystem must make it easier for clients to hold assets securely, access liquidity, and deploy collateral efficiently within trusted frameworks.

Jack McDonald, Ripple's SVP for stablecoins, said RLUSD was built for exactly this kind of institutional use case. He added that combining RLUSD on the XRP Ledger, Standard Chartered's custody capabilities, and LMAX Group's trading infrastructure creates a practical path for institutions to use stablecoins across global markets.

Standard Chartered's growing crypto footprint

The RLUSD custody launch comes as part of a broader push by Standard Chartered to expand its crypto custody operations. Last week, the bank's Singapore unit said it plans to launch institutional crypto custody services by the end of the year, extending its existing crypto custody presence in the UAE, Luxembourg, and Hong Kong.

In April, Bloomberg reported that Standard Chartered was considering folding parts of Zodia Custody, an institutional crypto custodian the bank incubated with Northern Trust in 2020, into its corporate bank division. In May, the bank confirmed its non-binding offer had been accepted. Zodia has been operating in Singapore since September 2023 and later expanded into Hong Kong. In June, Zodia secured a payment institution license in Luxembourg, enabling regulated stablecoin custody and transfer services across the EU.

What is confirmed and what remains open

Confirmed: Standard Chartered has launched RLUSD custody on the XRP Ledger through its DIFC branch. The bank is working with Ripple and LMAX Group on a planned collateral integration.

Still unclear: The collateral mirroring arrangement has not launched. It requires final documentation, testing, regulatory clearance, and internal approvals. No timeline or launch date has been provided.

Why this matters for crypto institutions

The development shows a major traditional bank offering custody for a stablecoin built on the XRP Ledger, a blockchain that supports fast, low-cost transactions. It also signals that institutions may soon be able to use RLUSD as collateral in trading products without transferring the underlying assets, which could make stablecoins more practical for institutional risk management.

Sources

• The Block

Read also: Standard Chartered Launches RLUSD Stablecoin Custody, Eyes LMAX Collateral Deal