Standard Chartered launches institutional custody for Ripple's RLUSD stablecoin via its DIFC Branch, with plans to integrate it as collateral for trading products.
DeFi & Yields ·
Standard Chartered has activated custody infrastructure for Ripple's RLUSD stablecoin through its Dubai International Financial Centre branch, regulated by the Dubai Financial Services Authority. The institutional service enables eligible clients to hold the stablecoin within the bank's digital asset custody framework. Standard Chartered is collaborating with Ripple and LMAX Group to extend this arrangement into a collateral model for selected trading products.
Under the planned structure, RLUSD held in Standard Chartered custody would be mirrored at LMAX Group's trading venues, allowing institutional participants to deploy the stablecoin's value without physically moving the assets. This arrangement aims to reduce operational friction tied to asset transfers, improve how counterparties manage exposure, and enable more efficient allocation of institutional capital. The collateral integration remains subject to final documentation, testing, regulatory clearance, internal approvals, and jurisdictional requirements—it is not yet operational.
The stablecoin has grown to a market cap exceeding $2.5 billion in less than two years since launch, reflecting institutional interest in Ripple's native asset. Whether the pending collateral structure gains final approval and when that might occur remain open questions.