- Standard Chartered is rolling out custody services for Ripple’s RLUSD stablecoin via its DFSA-regulated Dubai International Financial Centre (DIFC) branch.
- A collateral mirroring model with institutional trading operator LMAX Group will permit institutions to leverage RLUSD holdings for trading without transferring underlying tokens off the bank’s balance sheet.
- The initiative builds upon a $150 million multiyear partnership between Ripple and LMAX Group, complementing existing reserve custody handled by BNY.
Standard Chartered Launches Institutional Custody for Ripple’s RLUSD
Standard Chartered has expanded its digital asset custody capabilities to include Ripple’s US dollar-denominated stablecoin, RLUSD. The service is being delivered through the bank’s branch in the Dubai International Financial Centre (DIFC), which operates under the regulatory supervision of the Dubai Financial Services Authority (DFSA). By integrating Standard Chartered’s tier-one institutional safekeeping with Ripple’s enterprise stablecoin, the offering forms the foundational custody pillar of an expansive collaboration that features institutional market infrastructure provider LMAX Group.
This initiative expands the digital asset footprint Standard Chartered first introduced in the United Arab Emirates in September 2024. The bank’s initial digital custody service supported primary cryptocurrencies Bitcoin and Ether, launching with Brevan Howard Digital—the dedicated cryptocurrency division of hedge fund manager Brevan Howard—as its cornerstone client. The inclusion of RLUSD allows institutional clients to secure RLUSD tokens minted on the XRP Ledger within the bank’s compliant custody environment.
Collateral Mirroring Architecture with LMAX Group
Beyond traditional digital asset safekeeping, the institutional framework incorporates an advanced collateral integration designed alongside LMAX Group, which operates institutional trading infrastructure across global foreign exchange and digital assets. Under a proposed collateral mirroring structure, RLUSD held under Standard Chartered’s institutional custody will become eligible collateral to back financial obligations across agreed LMAX Group products and services.
Through this mirroring model, LMAX Group will recognize the collateral value of an institution’s RLUSD balances without requiring the entity to move the underlying tokens onto the exchange platform itself. By allowing the tokens to remain securely within Standard Chartered’s bank-grade vaults, the participating firms aim to mitigate asset transfer risks, significantly reduce counterparty exposure during trading operations, and optimize capital efficiency for market participants.
Capital Commitments and Reserve Oversight
The operational framework deepens an ongoing relationship between Ripple and LMAX Group. On January 15, the two companies announced a multiyear agreement that included $150 million in financing committed by Ripple to support LMAX Group’s strategic expansion, with LMAX agreeing to adopt RLUSD as a primary collateral asset across multiple trading lines. The new setup links Standard Chartered directly to that ecosystem through its specialized collateral mirroring framework.
The institutional custody of circulating RLUSD tokens functions alongside separate mechanisms established for the stablecoin’s underlying backing assets. In July 2025, Ripple appointed BNY as the primary reserve custodian tasked with safeguarding the cash and equivalent reserves backing RLUSD. Meanwhile, RLUSD tokens maintain standard regulatory oversight via Ripple subsidiary Standard Custody & Trust Company under a New York trust charter supervised by the New York Department of Financial Services (NYDFS), which requires segregated reserves and regular independent reserve attestations.
Why This Matters
The integration of institutional-grade custody with decentralized tokens addresses one of the primary hurdles for corporate crypto adoption: operational and counterparty risk. Institutional market participants often face capital fragmentation when depositing assets across several non-bank trading platforms. By allowing collateral mirroring between an international bank such as Standard Chartered and an institutional execution venue like LMAX Group, capital can remain protected inside a regulated banking environment while maintaining full utility in high-volume markets.
However, the full deployment of the planned collateral mirroring functions remains dependent on pending requirements, including final documentation, system integration and testing, internal approvals, and broader jurisdictional regulatory clearance.
Frequently Asked Questions
Where is Standard Chartered providing RLUSD custody?
The custody service is provided directly through Standard Chartered’s branch situated in the Dubai International Financial Centre (DIFC), operating under the regulatory perimeter of the Dubai Financial Services Authority (DFSA).
How does the collateral mirroring model with LMAX Group work?
The collateral mirroring model enables institutions to pledge their RLUSD as eligible collateral for LMAX Group trading services while keeping the actual tokens within Standard Chartered’s custody. LMAX recognizes the mirrored value of the assets, eliminating the need to move the underlying stablecoins onto the trading venue.
Who manages the reserves that back the RLUSD stablecoin?
While Standard Chartered safeguards eligible institutions’ issued RLUSD tokens, the backing reserve assets that secure the stablecoin’s dollar peg are held in a separate arrangement with BNY, which was designated as primary reserve custodian in July 2025.
