Standard Chartered adds Ripple USD custody, eyes LMAX collateral deal

What happened

Standard Chartered has launched custody for Ripple’s RLUSD stablecoin (a digital token meant to hold a fixed value, usually one dollar) on the XRP Ledger and plans to let institutions use the tokens as trading collateral. Standard Chartered has launched institutional custody services for Ripple’s RLUSD stablecoin, with plans to expand its use as trading collateral.

The UK-based multinational bank announced Monday it rolled out RLUSD support on the XRP Ledger (XRPL) through its Dubai International Financial Centre (DIFC) branch, giving eligible institutional clients access to its digital asset custody infrastructure. Standard Chartered plans to extend its collateral-mirroring model to LMAX Group, an institutional trading company, allowing clients to use RLUSD as trading collateral while keeping the tokens in the bank’s custody.

The model would let LMAX recognize the value of eligible RLUSD holdings without requiring clients to transfer the tokens to its trading platform. Standard Chartered said this could reduce transfer-related risks and help institutions manage their exposure to trading counterparties. Cointelegraph contacted Standard Chartered for further details and will update this article upon receiving a response.

Key facts

• The UK-based multinational bank — announced: Monday it rolled out RLUSD support on the XRP Ledger (XRPL) through its Dubai International Financial Centre (DIFC) branch, giving eligible institutional clients access to its digital asset custody infrastructure