The bank is working with Ripple and LMAX Group on a planned collateral arrangement that would allow RLUSD to be used as eligible collateral for agreed products and services on LMAX Group's platform.
Standard Chartered has begun offering custody services for RLUSD, Ripple’s US dollar-pegged stablecoin issued on the XRP Ledger (XRPL), to eligible institutional clients, the firm said Monday.
The service provides access to the bank’s digital asset custody infrastructure through its DIFC branch in Dubai, which is regulated by the Dubai Financial Services Authority.
The launch deepens the partnership between Standard Chartered, Ripple and LMAX Group, which plan to let institutional clients use RLUSD as eligible collateral on LMAX Group without transferring the underlying stablecoins directly to the trading venue.
The companies are working to establish RLUSD as eligible collateral for agreed LMAX Group products and services, using Standard Chartered’s collateral mirroring model to connect custody with institutional trading.
Through collateral mirroring, the value of eligible RLUSD holdings can be recognized by LMAX Group without moving the underlying tokens directly to the trading venue. The approach is expected to make it easier for institutions to use digital assets in trading and collateral workflows while maintaining custody arrangements, limiting transfer-related operational risks and counterparty exposure, and improving the efficiency of capital deployment.
Standard Chartered and Ripple have worked together for more than a decade, beginning in late 2015 with a proof of concept that applied distributed-ledger technology to trade-finance invoicing.
The collaboration expanded into cross-border payments in 2017. Standard Chartered completed its first real-time corporate cross-border payment using Ripple’s enterprise blockchain technology in July, with the pilot reportedly settling in less than 10 seconds rather than the typical two days. Standard Chartered Singapore and India’s Axis Bank also used RippleNet for live corporate cross-border payments that year.
The planned collateral capabilities remain subject to final documentation, successful testing, applicable regulations, internal approvals and jurisdictional readiness.
