Standard Chartered Launches RLUSD Stablecoin Custody, Eyes LMAX Collateral Deal
Custody live, collateral deal pending
Standard Chartered announced on Monday, October 12, that it has launched institutional custody services for Ripple's RLUSD stablecoin on the XRP Ledger. The rollout is available through the bank's Dubai International Financial Centre branch, giving eligible institutional clients access to the bank's digital asset custody infrastructure.
The bank also plans to extend a collateral-mirroring model to LMAX Group, an institutional trading firm, which would allow clients to use RLUSD as trading collateral without moving the tokens out of the bank's custody.
Key numbers and names
- RLUSD is a stablecoin issued by Ripple and runs on the XRP Ledger, a blockchain network used for fast, low-cost transactions.
- Custody is available through Standard Chartered's DIFC (Dubai) branch.
- Ripple and LMAX Group announced a partnership in January 2026 to expand institutional use of RLUSD.
- The collateral capabilities remain subject to final documentation, testing, regulatory requirements, and internal approvals.
What the bank said about the collateral model
Under the planned collateral arrangement, LMAX would be able to recognize the value of eligible RLUSD holdings held at Standard Chartered. Clients would not need to transfer tokens to LMAX's trading platform. Standard Chartered said this approach could reduce risks related to token transfers and help institutions manage their exposure to trading counterparties.
The bank noted that the additional collateral features are not yet finalized and depend on completing documentation, testing, and regulatory processes.
What is confirmed
- Standard Chartered has launched RLUSD custody on the XRP Ledger through its DIFC branch.
- Ripple and LMAX Group formally partnered in January 2026 to promote institutional stablecoin use.
- Cointelegraph contacted Standard Chartered for further details and is awaiting a response.
What is still unclear
- No confirmed timeline has been given for when the LMAX collateral integration will go live.
- Standard Chartered had not provided additional details in response to Cointelegraph's request at the time of publication.
- It is unclear which specific regulatory bodies need to approve the collateral features before they can be activated.
Why this matters for institutional crypto users
Stablecoins are digital tokens pegged to a fixed value, usually the U.S. dollar, and are often used as a trading or settlement asset. Having a regulated bank provide custody for a stablecoin means institutional clients can keep those assets within a familiar financial framework.
The collateral arrangement, if approved, would let institutions pledge stablecoin holdings as security for trades without physically moving the tokens between platforms. That reduces the operational risk of transfers and may lower the cost of managing crypto-based collateral.
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.