Standard Chartered Launches RLUSD Custody in Dubai, Plans LMAX Collateral Link
Standard Chartered opens RLUSD custody in Dubai
Global bank Standard Chartered now offers regulated custody of Ripple's dollar-pegged stablecoin RLUSD through its Dubai branch. RLUSD is a stablecoin (a crypto asset designed to hold a fixed value equal to one US dollar) that runs on the XRP Ledger. The service gives eligible institutional clients a regulated bank to hold the stablecoin.
The bank, which manages nearly $450 billion in assets, also plans to work with Ripple and LMAX Group, an institutional trading venue for foreign exchange and digital assets. Under the plan, clients could use RLUSD held at Standard Chartered as collateral for trading on LMAX's platform. That part of the arrangement is not yet live and remains subject to documentation, testing, regulatory requirements, and internal approvals, the bank confirmed by email on Monday.
Key numbers and details
- Standard Chartered manages about $450 billion in assets.
- RLUSD custody is available through the bank's Dubai branch.
- The LMAX collateral link is planned but not yet operational.
- Ripple previously gave LMAX $150 million in financing in January to integrate RLUSD into LMAX's institutional infrastructure.
What Standard Chartered says
Waqar Chaudry, the bank's global head of digital assets, securities services, and transaction services, said institutional clients want to participate in digital asset markets without compromising how their assets are safeguarded or how risk is managed.
The bank framed the move as separating custody from execution. The bank holds the tokens while LMAX would accept their value as collateral, so clients would not need to transfer the stablecoin to the trading venue.
How others view the move
Joseph Goh, head of Asia-Pacific at Areta, a Singapore-based crypto investment bank, said regulated custody connected to a global systemically important bank is becoming one of the most valuable pieces of infrastructure in digital assets.
The LMAX plan builds on Ripple's earlier effort to position RLUSD as a settlement and collateral asset for institutions. The bank's custody push also fits a broader pattern: last week Standard Chartered said it planned to offer institutional clients in Singapore custody for selected cryptocurrencies, stablecoins, and tokenized real-world assets, having fully acquired Zodia Custody earlier this year.
What is confirmed
- Standard Chartered now offers RLUSD custody in Dubai for eligible institutional clients.
- The bank has publicly announced plans to connect RLUSD custody with LMAX's trading platform.
- Ripple provided LMAX with $150 million in financing in January.
What remains unclear
- No timeline has been given for when the LMAX collateral link will be operational.
- The arrangement is subject to documentation, testing, regulatory requirements, and internal approvals.
Why this matters for institutional crypto use
The arrangement could appeal to banks, funds, and other institutions that want to trade with stablecoins but do not want to leave assets at a trading venue. By keeping custody at a regulated bank while allowing LMAX to accept the value as collateral, the model reduces the need for institutions to move stablecoins to a venue just to trade. If completed, it would give RLUSD another route into the collateral systems behind institutional trading, rather than limiting the token to payments or spot settlement.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
Related Posts
Strategy Adds $21.5M in Bitcoin, Buys Back $192M in STRC Shares
