Standard Chartered has launched institutional custody support for Ripple’s native stablecoin and is working with the company and LMAX Group on broader collateral integration aimed at deepening the asset in institutional trading.
The service is now available through the bank’s DIFC branch in Dubai, which is regulated by the Dubai Financial Services Authority, and allows eligible customers access to Standard Chartered’s digital asset custody infrastructure.
The banking giant wants to make collateral eligible for RLUSD for certain LMAX products and services, and the currently planned structure indicates that Standard Chartered would extend its mirror model to these.
If successful, this would allow the value of the stablecoin held in custody to be reflected on the trading platform without requiring the underlying assets themselves to be transferred there.
The parties involved in the new collaboration argued that this configuration could reduce the operational risk linked to transfers, improve the management of exposure to counterparties and make institutional capital more efficient.
“RLUSD was built for exactly this type of institutional use case. Our customers want the efficiency of a regulated stablecoin without giving up the custody standards they already trust. Bringing together RLUSD on the
Importantly, the planned safeguards integration is not yet operational, but Standard Chartered said it remains subject to final documentation, testing, regulatory requirements, internal approvals and jurisdictional readiness.
Nonetheless, this is another major adoption victory for Ripple and its native assets. The stablecoin alone recently reached a market capitalization of over $2.5 billion, less than two years after its debut.
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