Standard Chartered launches RLUSD custody in Dubai
Standard Chartered has opened RLUSD custody for eligible institutional clients in Dubai and plans an LMAX link that would let them use tokens as trading collateral.
The Blockheight Editors··2 min read
Standard Chartered launched custody for Ripple’s RLUSD stablecoin in Dubai on 12 October, giving eligible institutions access to bank custody while it works with Ripple and LMAX Group on a collateral link, the bank said. The service covers RLUSD issued on the XRP Ledger and is available through the bank’s DIFC Branch.
Which RLUSD can clients hold in custody?
The service supports institutional custody of RLUSD issued on the XRP Ledger, according to Standard Chartered. The bank said it is available to eligible clients through its Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority.
The announcement did not detail client eligibility criteria, fees or minimum holdings. It describes custody as live; the proposed use of RLUSD as LMAX collateral is a separate future capability.
How would RLUSD work as LMAX collateral?
Standard Chartered, Ripple and LMAX Group intend to let clients use eligible RLUSD as collateral for agreed LMAX products without transferring the tokens to the trading venue. Under the planned collateral mirroring model, the value of the assets held in custody would be mirrored to LMAX, according to LMAX Group’s announcement.
The arrangement is intended for trading and collateral management. The companies said it could reduce transfer-related operational risk and counterparty exposure, but they have not specified which products will accept RLUSD or how the collateral will be valued.
When could the LMAX link go live?
The companies have not announced a launch date. Standard Chartered said the future capabilities depend on final documentation, successful testing, applicable laws and regulations, internal approvals and jurisdictional readiness.
Further details are due as implementation progresses, according to the announcements. Until then, RLUSD custody is available to eligible clients through the DIFC Branch, while the LMAX collateral integration remains planned.
Source material
- the bank said — sc.com
- LMAX Group’s announcement — lmax.com