Standard Chartered has launched institutional custody for Ripple USD (RLUSD) on the XRP Ledger (XRPL).
The XRPL is a public blockchain designed for financial transactions.
Eligible clients can access the service through the bank’s branch in the Dubai International Financial Centre (DIFC). The Dubai Financial Services Authority (DFSA) regulates this branch.
In addition, the bank is working with Ripple and LMAX Group to make RLUSD eligible collateral.
The aim is for LMAX to accept the stablecoin as collateral for agreed products in trading and collateral management.
As part of this plan, LMAX Group has agreed to adopt Standard Chartered’s collateral mirroring model.
Under this model, clients would not need to transfer their RLUSD to the trading venue. The bank would instead mirror the value of eligible holdings to LMAX Group.
According to the companies, this arrangement could reduce transfer-related operational risk for clients.
It could also help them manage counterparty exposure and use capital more efficiently.
“By integrating our capabilities with Ripple and LMAX, we can help clients incorporate digital assets more confidently into their broader financial activities,”
said Waqar Chaudry, Global Head of Digital Assets, Securities Services, Transaction Services at Standard Chartered.
“Bringing together RLUSD on the XRP Ledger, Standard Chartered’s custody capabilities and LMAX Group’s institutional trading infrastructure creates a practical path for institutions to put stablecoins to work across global markets,”
said Jack McDonald, SVP, Stablecoins, Ripple.
However, these collateral capabilities are not yet available.
They remain subject to final documentation, successful testing, applicable laws and regulations, internal approvals and jurisdictional readiness.
The firms will announce further details as implementation progresses.
Featured image: Edited by Fintech News UAE, based on image by Standard Chartered via its website and Who is Danny via Magnific.
