Standard Chartered is launching an RLUSD custody service and plans to work with Ripple and LMAX Group to introduce a mechanism for using the stablecoin as trading collateral.
International banking group Standard Chartered announced the launch of an institutional custody service for Ripple USD (RLUSD) on the XRP Ledger (XRPL). The bank also announced plans to work with blockchain company Ripple and institutional trading venue operator LMAX Group to integrate the stablecoin into trading collateral management infrastructure.
The custody service is already available to eligible institutional clients through Standard Chartered Bank’s Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority (DFSA).
The next phase of the partnership will involve adding RLUSD to the list of eligible collateral assets for transactions across designated LMAX Group products and services. To achieve this, the partners plan to extend Standard Chartered’s existing collateral mirroring model to the group’s trading infrastructure. The mechanism will allow RLUSD held in custody at Standard Chartered to be used as trading collateral on LMAX Group venues without transferring the tokens to an exchange.
According to the project participants, the model will offer several benefits, including:
Reduced operational risk by minimizing the need to transfer digital assets between custodians and trading venues;
Lower counterparty risk by allowing assets to remain with an independent custodian;
Improved capital efficiency through more flexible management of digital assets and trading collateral.
Waqar Chaudry, Head of Digital Assets at Standard Chartered, noted that institutional investors want access to digital asset markets while maintaining high standards of custody and risk management. He said the partnership with Ripple and LMAX Group would allow clients to use digital assets more efficiently within their existing financial operations.
Luke Dorney, Head of Digital Asset Custody at LMAX Group, highlighted RLUSD’s growing role in the institutional market. He confirmed the group’s intention to adopt Standard Chartered’s collateral mirroring model to expand the stablecoin’s use on its trading platform.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, said RLUSD was designed from the outset with such institutional use cases in mind. According to McDonald, combining Standard Chartered’s custody capabilities, XRP Ledger infrastructure, and LMAX Group’s trading solutions will support broader adoption of the stablecoin across global financial markets.
No specific timeline has been announced for integrating RLUSD into LMAX Group’s trading collateral system. Implementation will depend on the execution of the necessary agreements, successful testing, internal approvals, and compliance with regulatory requirements in the relevant jurisdictions.
RLUSD was launched in late 2024 under a license from the New York State Department of Financial Services (NYDFS). In 2025, Ripple, Mastercard, WebBank, and Gemini tested the stablecoin for card payment settlement within traditional U.S. payment systems. RLUSD was later approved by the Dubai Financial Services Authority (DFSA) for use in the Dubai International Financial Centre (DIFC) and integrated into SBI Group’s infrastructure.
In 2026, Ripple continued developing RLUSD infrastructure for institutional market participants. The stablecoin was integrated into Flutterwave’s payment flows and Send App’s international remittance channels as a primary settlement asset in Africa. RLUSD also became one of the digital assets integrated into Mastercard’s settlement infrastructure.
