Standard Chartered launches RLUSD custody on XRPL, expands stablecoin collateral model

Expansion of stablecoin collateral model

The bank stated it aims to broaden its collateral-mirroring service in partnership with LMAX Group, an institutional trading provider. This system allows clients to utilize RLUSD as trading collateral while retaining the tokens within Standard Chartered’s custody platform.

Under the framework, LMAX Group would acknowledge the value of RLUSD held in custody without requiring clients to move tokens directly to its trading environment. The bank pointed out that this approach may support institutional clients in reducing risks associated with asset transfers and enhance their ability to manage trading counterparty exposure.

Standard Chartered highlighted that the collateral-mirroring system is designed to lower transfer risks and provide an additional layer of security for institutional traders seeking flexible collateral management.

Ripple, a leading blockchain payments company known for developing enterprise-grade digital payment solutions, previously announced a partnership with LMAX Group in January 2026 to advance institutional adoption of RLUSD.

Mini dictionary: RLUSD is a stablecoin launched by Ripple, pegged to the US dollar and designed for use on the XRP Ledger. It enables both individuals and institutions to transact and settle instantly across the blockchain network, providing regulatory-compliant digital cash for payments and trading.

Regulatory and approval process

The additional collateral functionalities being developed by Standard Chartered remain subject to a range of final steps, including completion of documentation, internal testing procedures, fulfillment of regulatory requirements, and internal governance approvals. The bank has not yet released an official timeline for full implementation.

Standard Chartered is recognized as a global banking group with a presence in over 50 markets and a focus on emerging markets and innovative financial technology solutions.

The RLUSD initiative forms part of Standard Chartered’s broader digital asset strategy, which has seen the firm expand crypto-related custody services in major financial centers, including recent plans announced for Singapore.

Standard Chartered’s DIFC-based digital asset custody platform is now open to RLUSD for institutional clients, while future expansion of collateral uses remains in the pipeline.