Global bank Standard Chartered has officially launched institutional custody services for Ripple's dollar-pegged stablecoin RLUSD. The bank is also partnering with Ripple and LMAX Group to pursue ways of using RLUSD as eligible collateral.

Custody Services Provided Through Dubai DIFC Branch

Standard Chartered announced on the 12th (local time) in an official press release that it has begun institutional custody services for Ripple USD (RLUSD), issued on the XRP Ledger (XRPL). This allows qualified clients to access Standard Chartered's digital asset custody infrastructure. The services are provided through the bank's Dubai International Financial Centre (DIFC) branch, regulated by the Dubai Financial Services Authority (DFSA).

Standard Chartered explained that this measure represents the next step in its collaboration to support institutional adoption of RLUSD.

Pursuing Collateral Integration with LMAX Group and Expanding 'Collateral Mirroring'

The partnership combines LMAX Group's institutional-grade market infrastructure with Standard Chartered's digital asset custody capabilities, with both sides pursuing ways to utilize them within an integrated operational framework. Standard Chartered, Ripple, and LMAX Group are working on arrangements to enable RLUSD to be used as eligible collateral in agreed LMAX Group products and solutions, with the key aim of expanding RLUSD's use in trading and collateral management.

In addition, plans are underway to extend Standard Chartered's Collateral Mirroring model to LMAX Group. Collateral Mirroring reflects the value of eligible collateral to LMAX Group without directly transferring the underlying RLUSD to the trading venue.

Standard Chartered expects these structures to give institutional clients greater flexibility in how they hold digital assets and use them in trading. It also anticipates they will help reduce operational risks associated with asset transfers, optimize counterparty risk exposure, and improve capital efficiency.

"Supporting Safe Custody and Collateral Utilization"... Executives from the Three Companies

Waqar Chaudry, Global Head of Digital Assets, Securities Services at Standard Chartered's Transaction Banking division, explained that institutional clients want to participate in the digital asset market while maintaining asset protection and risk management standards. He emphasized that it is important for clients to safely hold assets, access liquidity, and efficiently use collateral within a trusted framework, and that by combining capabilities with Ripple and LMAX Group, the bank can support clients in using digital assets across a broader range of financial activities.

Luke Dorney, Head of Digital Asset Custody at LMAX Group, said RLUSD is becoming an increasingly important component of the institutional digital asset market. He explained that agreeing to adopt Standard Chartered's Collateral Mirroring model gives clients greater flexibility to hold and utilize RLUSD across LMAX Group's markets, where various assets are traded, adding that this approach supports the custody and risk management standards institutions expect.

Jack McDonald, Senior Vice President of Stablecoin at Ripple, explained that RLUSD was created precisely for such institutional use cases. Ripple's clients, he said, want to leverage the efficiency of a regulated stablecoin while maintaining the trusted custody standards they already rely on. McDonald stated that combining XRP Ledger-based RLUSD, Standard Chartered's custody capabilities, and LMAX Group's institutional trading infrastructure creates a practical pathway for institutions to use stablecoins in global markets.

Future Features Subject to Documentation, Testing, and Regulatory Compliance

Standard Chartered also made clear that the features agreed for future introduction must satisfy several conditions, specifically the finalization of documentation, successful testing, compliance with applicable laws and regulations, internal approvals, and jurisdictional readiness. The company plans to announce additional details as implementation proceeds.

The service currently in operation is the institutional custody service for XRP Ledger-based RLUSD. Collateral integration with LMAX Group and the expansion of collateral mirroring are categorized as future implementation stages.

XRP Ledger: A Public Blockchain for Financial Transactions

According to Standard Chartered, the XRP Ledger is a public blockchain designed for fast, secure, and efficient global financial transactions. Built for financial applications, it supports fast and low-cost payment processing. It also serves as the underlying infrastructure enabling RLUSD to move efficiently between institutional counterparties and to be used in trading and collateral management activities.

Through this announcement, Standard Chartered confirmed the official launch of institutional custody services for XRP Ledger-based RLUSD. It also plans to proceed with follow-up steps, based on its partnership with Ripple and LMAX Group, to support the use of RLUSD in trading and collateral management.

[This article is based on an official press release issued by Standard Chartered on October 12, 2026. It distinguishes between the RLUSD custody service currently in operation and collateral integration features planned for the future. AI assistance was used in writing this article.]