CryptoSlate
Standard Chartered has launched custody for Ripple's RLUSD stablecoin, letting eligible institutional clients hold the token through the bank's Dubai International Financial Center branch, regulated by the Dubai Financial Services Authority. Announced on Oct. 12, the service covers RLUSD issued on the XRP Ledger and sets up the bank's role in a broader arrangement with Ripple and trading group LMAX to accept RLUSD as collateral for institutional trading.
Under the proposed model, Standard Chartered would mirror the value of eligible RLUSD holdings to LMAX, so clients can support trading positions without transferring the underlying tokens to the venue. That structure is designed to cut counterparty exposure and the operational risk of moving assets between custodians and exchanges, while keeping capital deployable.
Why it matters
The launch lands as RLUSD becomes one of the fastest-growing stablecoins in the market. Ripple added $765.3 million of market capitalization in the third quarter, the second-largest increase of any issuer behind Circle's USDC at $915 million, per RWA Foundation. Total circulating supply has since climbed to roughly $2.4 billion, with about $1.14 billion issued on XRPL and another $1.3 billion on Ethereum.
A systemically important bank holding a regulated stablecoin in custody is a legitimacy signal that goes beyond one token: it builds the custody-and-collateral plumbing institutions need before they can treat stablecoins as margin-grade assets.
Market impact
If the collateral integration goes live, RLUSD demand could extend beyond payments into derivatives and spot trading margin, drawing in banks, brokers and investment funds that need dollar-denominated assets. Ripple committed $150 million to support LMAX's expansion in January, targeting adoption across spot crypto, perpetual futures and CFDs.
The caveats are real: Standard Chartered has not disclosed custody volumes or named clients, and the collateral feature still needs final documentation, technical testing and regulatory approvals. Adoption breadth, not the launch itself, will decide the commercial impact.
Frequently asked questions
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What did Standard Chartered launch for Ripple's RLUSD?
The bank launched custody for RLUSD through its Dubai International Financial Center branch, regulated by the Dubai Financial Services Authority. Eligible institutional clients can hold RLUSD issued on the XRP Ledger with the bank, announced Oct. 12.
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How would RLUSD work as trading collateral under the LMAX arrangement?
Standard Chartered would mirror the value of eligible RLUSD holdings to LMAX, letting clients support trading positions without transferring the underlying tokens to the venue. This reduces counterparty exposure and the operational risk of moving assets between custodians and exchanges.
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How fast is RLUSD's supply growing?
Ripple added $765.3 million to RLUSD's market capitalization in the third quarter, the second-largest increase of any stablecoin issuer behind Circle's USDC at $915 million, per RWA Foundation. Circulating supply has since reached about $2.4 billion.
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Which blockchains is RLUSD issued on?
About $1.14 billion of RLUSD is issued on the XRP Ledger and roughly $1.3 billion on Ethereum, according to DeFiLlama data, out of a total circulating supply near $2.4 billion.
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When can institutions start using RLUSD as collateral on LMAX?
No date has been announced. Implementation remains subject to final documentation, technical testing, regulatory requirements and internal approvals across relevant jurisdictions, and Standard Chartered has not disclosed custody volumes or named participating clients.
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