Standard Chartered Offers Institutional Custody for Ripple's RLUSD Stablecoin in Dubai
Standard Chartered expands digital asset custody to Ripple's RLUSD
Standard Chartered announced Monday that its Dubai International Financial Centre (DIFC) branch now provides institutional custody for Ripple USD (RLUSD), a stablecoin issued on the XRP Ledger. The service is available to eligible clients and is regulated by the Dubai Financial Services Authority (DFSA).
Key details
- The bank will hold RLUSD tokens on behalf of institutional clients through its digital asset custody infrastructure.
- Standard Chartered is also joining a planned integration with LMAX Group, a London-based trading marketplace, to let clients use RLUSD as collateral without transferring the tokens to the exchange.
- RLUSD has reached approximately $2.45 billion in market capitalization, though it remains under 1% of the total stablecoin market, which is valued at roughly $306 billion.
What the bank said
"Standard Chartered today announced that it now supports institutional custody of Ripple USD (RLUSD) issued on the XRP Ledger (XRPL), giving eligible clients access to the Bank's digital asset custody infrastructure," the bank stated.
Waqar Chaudry, who heads digital assets in the bank's securities services unit, said: "Institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded."
Custody and collateral mirroring explained
Custody means a regulated institution keeps a client's assets secure and assumes legal responsibility for them. Under the bank's model, Standard Chartered can supervise, freeze, or control the funds while they remain in its care.
The planned LMAX Group integration uses a process called collateral mirroring. With this approach, the RLUSD tokens stay at Standard Chartered while LMAX receives a mirrored record of their value that counts toward the client's trades. The actual tokens never move to the exchange, which could offer protection in the event of an exchange failure. Standard Chartered is one of 29 banks the Financial Stability Board considers too big to fail.
Timeline and approvals
RLUSD received approval from Dubai's regulator in June 2025. The LMAX collaboration is not yet live. The bank said it remains subject to final documentation, testing, and regulatory approvals, and did not provide a date for when clients will be able to post RLUSD as margin.
Standard Chartered has offered crypto custody in Dubai since 2024. In July, the bank became the first global systemically important bank to allow institutions to mint and redeem Circle's USDC directly.
Why this matters
The move signals growing institutional interest in stablecoins—crypto tokens pegged to the U.S. dollar and backed by cash and government bonds. Banks are increasingly building custody and trading infrastructure around these assets, which could make them more accessible to large investors while addressing concerns about asset safety.
What is still unclear
The exact timeline for the LMAX integration remains uncertain. Standard Chartered has not confirmed when the collateral mirroring feature will launch or which specific products will initially support RLUSD as margin.
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.