Standard Chartered has launched institutional custody for Ripple USD (RLUSD) on the XRP Ledger (XRPL), giving eligible clients access to its digital asset custody infrastructure as the bank works with Ripple and LMAX Group to expand the stablecoin’s use in trading and collateral management.
The service, announced on October 12, is available through Standard Chartered’s Dubai International Financial Centre (DIFC) branch, which the Dubai Financial Services Authority regulates. The bank is also working with Ripple and LMAX Group on a planned integration that would allow institutional clients to use RLUSD as eligible collateral for agreed trading products.
RLUSD’s growing supply on the XRP Ledger provides context for the launch. The stablecoin’s market capitalisation surpassed $2 billion in August, with approximately $988 million issued on the XRP Ledger, according to figures reported at the time.
Collateral Integration Expands Institutional Trading
The planned integration will allow institutional clients to use RLUSD as collateral for eligible LMAX Group products without transferring the underlying stablecoin directly to the trading venue. Standard Chartered will instead mirror the value of eligible collateral to LMAX Group while the assets remain in custody.
The arrangement is expected to give institutions greater flexibility in how they hold and deploy digital assets for trading, while reducing transfer-related operational risks, optimising counterparty exposure and improving capital efficiency.
Waqar Chaudry, Global Head of Digital Assets, Securities Services, Transaction Services at Standard Chartered, said institutional clients want to safeguard their assets while accessing liquidity and deploying collateral efficiently.
“Institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed. By integrating our capabilities with Ripple and LMAX, we can help clients incorporate digital assets more confidently into their broader financial activities.”
The collateral integration remains subject to final documentation, successful testing, applicable laws and regulations, internal approvals and jurisdictional readiness. Standard Chartered said it would provide further details as implementation progresses.
Investor Takeaway
Standard Chartered plans to let institutional clients use RLUSD as collateral for eligible LMAX Group trading products while the assets remain in custody, with the bank mirroring their value to support collateral management.
Stablecoin Adoption Extends Across Financial Markets
The custody launch comes as payment companies and financial institutions expand their use of stablecoins for settlement. In June, Mastercard added RLUSD to its planned stablecoin settlement options across eight blockchain networks, alongside assets including Circle’s USDC and PayPal’s PYUSD. The initiative is designed to let participating issuers and acquirers settle eligible card transactions using regulated stablecoins, including outside conventional banking hours.
The XRP Ledger has also featured in institutional experiments linking tokenised assets with traditional banking infrastructure. In May, Mastercard, JPMorgan, Ripple and Ondo Finance completed a cross-border transaction involving the redemption of tokenised US Treasuries on the XRP Ledger, followed by dollar settlement through JPMorgan’s banking infrastructure.
Ripple has pursued similar applications in payments. In November 2025, the company, Mastercard, WebBank and Gemini announced a pilot to test RLUSD for credit card transaction settlement through the XRP Ledger, subject to regulatory clearance.
Investor Takeaway
RLUSD’s custody launch comes amid wider institutional efforts to use stablecoins for payments and settlement, while the XRP Ledger continues to feature in initiatives linking blockchain-based assets with traditional financial infrastructure.
