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Standard Chartered has launched regulated institutional custody of Ripple’s dollar-pegged stablecoin, RLUSD, through its Dubai branch.
What Happened
The global bank now allows eligible institutional clients to hold RLUSD in a regulated custody account.
It also plans to connect RLUSD held at Standard Chartered with LMAX Group’s trading platform as collateral—without requiring clients to transfer the stablecoin.
Key Facts
- Standard Chartered offers RLUSD custody in Dubai, a major financial hub.
- The custody service is regulated and designed for institutional clients.
- Standard Chartered and LMAX plan to enable RLUSD use as trading collateral, pending approvals and testing.
- Ripple previously provided LMAX with $150 million in financing to integrate RLUSD into institutional systems.
Background: How It Works
Under the proposed arrangement, institutions will keep RLUSD in custody with Standard Chartered.
They can then use that held stablecoin as collateral on LMAX’s trading platform—without moving it from the bank’s vault.
This separates asset custody from trading execution, a key concern for institutions managing risk and compliance.
Why It Matters
Regulated bank custody is a critical infrastructure for digital assets.
Joseph Goh of Areta said: Regulated custody connected to a global systemically important bank is becoming one of the most valuable pieces of infrastructure in digital assets.
Waqar Chaudry, Standard Chartered’s global head of digital assets, noted that institutions want to participate in digital markets without compromising asset safety or risk management.
Limitations and Open Questions
The LMAX collateral link is not yet live.
It remains subject to documentation, regulatory approvals, and internal testing.
Standard Chartered has not confirmed the full scope of client eligibility or operational timelines.
What to Watch Next
Regulators in Dubai and the UAE will likely oversee the implementation.
Market participants will monitor whether the arrangement expands to other financial centers.
Further progress may depend on LMAX’s ability to integrate RLUSD into its institutional trading systems.
Source: Coindesk
