Standard Chartered Launches Ripple Custody, Plans Trading Without Moving Assets

Standard Chartered has launched institutional custody for Ripple’s RLUSD stablecoin on the XRP Ledger while also developing a model for using assets as collateral without moving them to a trading platform.

According to a statement the bank shared with The Block on Monday, RLUSD custody is now available. The service is offered through its Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority.

The second part of the development involves collateral work with Ripple and LMAX Group. The planned model aims to allow institutional clients to use the RLUSD they hold in custody as collateral for certain LMAX products.

Using RLUSD as collateral without transferring it to a trading platform

Under the model, the value of eligible RLUSD collateral will be reflected at LMAX, but the underlying assets will not need to be sent directly to the trading platform. The goal is to create a more flexible setup between where institutions custody their assets and the platform where they trade.

The collateral integration has not yet gone live. Completion of final documentation, testing, regulatory requirements, and internal approvals are still pending; no launch date has been announced.

Waqar Chaudry, Standard Chartered’s head of digital assets, said institutional clients do not want to compromise on asset security and risk management as they participate in digital asset markets. Jack McDonald, Ripple’s stablecoin executive, also said RLUSD was designed for these types of institutional uses.

Bank expands crypto custody services

Standard Chartered’s custody network currently covers the United Arab Emirates, Luxembourg, and Hong Kong. The bank’s Singapore unit also announced last week that it plans to launch institutional crypto custody services by the end of the year.

The service launched for RLUSD marks the latest step in this expansion, while the planned collateral connection with LMAX focuses on how the custodied stablecoins can be used in trading.