Standard Chartered has begun custodying Ripple’s RLUSD stablecoin for eligible institutional clients and plans to work with Ripple and trading group LMAX on a collateral integration. If implemented, the arrangement would let clients keep RLUSD in bank custody while using its value to support positions on LMAX, without transferring tokens directly to the exchange. No launch date has been announced.
Standard Chartered’s DIFC branch adds RLUSD custody
On October 12, Standard Chartered said eligible institutional clients can custody RLUSD issued on the XRP Ledger (XRPL) through its Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority (DFSA).
Under the proposed model, Standard Chartered would map the value of eligible clients’ RLUSD holdings to LMAX. Clients could then use the assets to support trading positions while the stablecoins remain with the bank. For institutions, this could reduce the operational steps and counterparty exposure involved in moving assets between a custodian and a trading venue. The practical impact will depend on how the service is implemented and used.
Waqar Chaudry, global head of digital assets for Standard Chartered Securities Services, said institutional investors want access to digital-asset markets while maintaining their custody and risk-management requirements. Connecting bank custody with trading-platform infrastructure is central to the proposed arrangement.
RLUSD supply rose by $765.3 million in Q3
The partnership is advancing as RLUSD’s supply expands. RWA Foundation data show that the stablecoin’s market capitalization grew by $765.3 million in the 90 days through the end of the third quarter, the second-largest increase among stablecoin issuers. Circle’s USDC led with a $915 million increase, while United Stables ranked third with $474.2 million.
DeFiLlama data put RLUSD’s total circulating supply at about $2.4 billion. Around $1.14 billion was issued on XRPL and roughly $1.3 billion on Ethereum. The larger supply gives Ripple a broader base of dollar-denominated tokens as it seeks to extend RLUSD beyond payments and transfers into institutional trading.
Ripple and LMAX announced a multiyear partnership in January to integrate RLUSD into LMAX’s trading infrastructure. Ripple committed $150 million in financing to support LMAX’s expansion. The planned collaboration covers spot cryptocurrency trading, perpetual futures, contracts for difference and other institutional products. Standard Chartered’s role would give institutions a way to access LMAX’s infrastructure while retaining bank custody of their RLUSD.
Collateral integration has no launch date
Whether the arrangement generates additional institutional demand for RLUSD will depend on adoption and on which products LMAX ultimately allows clients to collateralize with the stablecoin. Standard Chartered has not disclosed how much RLUSD it holds in custody or named participating clients.
The parties have yet to announce a formal launch date for the collateral integration. The service still requires final documentation, technical testing, applicable regulatory requirements and internal approvals. Progress on those steps will determine when institutional clients can use RLUSD held at Standard Chartered to support LMAX trading positions.