Standard Chartered has launched institutional custody for Ripple USD (RLUSD) issued on the XRP Ledger through its Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority.
The bank is also working with Ripple and LMAX Group on a collateral-mirroring arrangement. Under the proposed system, LMAX would recognize the value of eligible RLUSD held in Standard Chartered custody without requiring clients to transfer the tokens directly to the trading venue. The structure is intended to reduce operational risks linked to asset transfers while limiting exposure to trading counterparties and improving the efficiency of collateral use.
The planned integration builds on a January 2026 partnership between Ripple and LMAX. That agreement called for RLUSD to become a core collateral asset across LMAX’s institutional trading infrastructure, including spot cryptocurrency, perpetual-futures and contract-for-difference markets.
LMAX’s earlier plans identified RLUSD as both collateral and a settlement currency for spot cryptocurrency trading and fiat-linked markets. The company also described using the stablecoin for margin funding and institutional access across its trading venues, with custody through segregated wallets.
RLUSD is designed to maintain a one-dollar value and is issued by Standard Custody & Trust Company, a limited-purpose trust company supervised by the New York State Department of Financial Services.
The LMAX collateral arrangement is not yet operational. Its launch remains subject to final documentation, successful testing, applicable laws and regulations, internal approvals and readiness in the relevant jurisdictions.