Standard Chartered launches RLUSD custody on XRP Ledger
Standard Chartered has launched RLUSD custody on the XRP Ledger through its Dubai branch, while a planned LMAX deal could let institutions use it as collateral.
The Splyt Genesis Desk
On Oct. 12, Standard Chartered launched custody for Ripple USD (RLUSD) on the XRP Ledger, giving eligible clients a way to hold the stablecoin through the bank. In its announcement, the bank said the service is available through its DIFC branch, regulated by the Dubai Financial Services Authority.
The launch is live, but a related plan with Ripple and LMAX Group is still in development. That proposal would allow RLUSD held in custody to count as eligible collateral for agreed LMAX products, without transferring the tokens directly to the trading venue.
Who can use Standard Chartered’s RLUSD custody?
The service is for eligible institutional clients, according to Standard Chartered. It covers RLUSD issued on the XRP Ledger and gives those clients access to the bank’s digital asset custody infrastructure through its Dubai International Financial Centre branch.
Custody means the bank safeguards the asset for clients. It does not mean the planned LMAX collateral arrangement is already available. The bank said the parties are working toward that integration, which would connect RLUSD held in custody with trading and collateral services at LMAX.
How would the LMAX collateral plan work?
Under the proposed model, the value of eligible RLUSD collateral would be mirrored to LMAX Group. The underlying tokens would stay in custody rather than move directly to the trading venue, according to Standard Chartered. That could give institutions a way to use the stablecoin for agreed trading products while keeping the assets under the bank’s custody.
The bank says this approach is intended to reduce transfer-related operational risk and improve capital efficiency. Those are expected benefits, not results the parties have reported from a live service. The plan remains subject to final documentation, successful testing, applicable laws and regulations, internal approvals and readiness in each jurisdiction.
When could institutions use RLUSD as LMAX collateral?
No launch date has been announced for the collateral integration. The Block’s report also said the arrangement awaits documentation, testing and approvals.
That leaves two separate developments to track: custody is available now to eligible clients through the DIFC branch; using RLUSD as collateral at LMAX is still planned. The next signal is an update from Standard Chartered, Ripple or LMAX on implementation and when the required approvals and testing are complete.
Source material
- announcement — sc.com
- The Block’s report — theblock.co