Standard Chartered (@StanChart) has begun offering institutional custody for Ripple's (@Ripple) dollar-backed RLUSD stablecoin. The bank is also exploring a collateral arrangement for RLUSD w
Standard Chartered (@StanChart) has begun offering institutional custody for Ripple's (@Ripple) dollar-backed RLUSD stablecoin. The bank is also exploring a collateral arrangement for RLUSD with trading platform LMAX Group.
The plan involves keeping client tokens with the custodian bank and using their underlying value as trading collateral. Under that structure, clients' RLUSD would remain in custody at Standard Chartered instead of being transferred directly to an exchange, while LMAX would reflect the asset's value as collateral. Standard Chartered describes this as a collateral mirroring model.
The aim is to reduce counterparty risk during transfers and to be capital-efficient for institutional clients. That would let institutional investors use crypto as trading collateral without moving the assets separately, cutting operational and counterparty risk tied to transfers.
The collateral plans are not final. They still need to be agreed upon, tested and approved. Standard Chartered, Ripple and LMAX Group said they are pursuing a plan to recognize RLUSD as eligible collateral for some products and services.
According to a report cited by Bloomingbit, MarketScreener reported on October 12 that the custody service for RLUSD, which is issued on the XRP Ledger, is being offered through Standard Chartered's DIFC branch, regulated by the Dubai Financial Services Authority.
The move extends a growing set of ties between the three firms. Standard Chartered was recently appointed as LMAX Group's digital asset custodian through its DFSA-regulated DIFC branch and Standard Chartered Luxembourg.The two firms have also said they are exploring off-exchange custody solutions that combine bank-grade custody with access to institutional digital asset liquidity.
Ripple and LMAX are already linked commercially. Ripple is providing $150 million in financing to LMAX Group under a multi-year deal that aims to bring RLUSD into LMAX's exchange infrastructure as a core collateral and settlement asset.LMAX said it would integrate RLUSD across its institutional trading infrastructure, including for cross-collateralization and margin across spot crypto, perpetual futures and CFD trading.
RLUSD itself has grown steadily since launch. It launched in December 2024 as an enterprise stablecoin issued by Standard Custody & Trust Company, a Ripple subsidiary operating under a New York trust charter.RWA.xyz data lists its total asset value at about $2.47 billion as of October 8, 2026.
For institutions, the key question is whether bank custody combined with off-exchange collateral can make stablecoins more usable in regulated trading. Details such as timelines and approvals for the LMAX arrangement have not been disclosed.
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