Standard Chartered launches RLUSD custody; LMAX Group and Ripple plan RLUSD collateral integration
Standard Chartered's institutional custody of RLUSD on the XRP Ledger is now live through its DIFC Branch, regulated by the Dubai Financial Services Authority. LMAX Group, Ripple and Standard Chartered separately intend to make RLUSD eligible collateral for agreed LMAX Group products and to extend Standard Chartered's collateral mirroring model to LMAX, subject to documentation, testing and approvals.
View original sourceCustody live, collateral still planned
Standard Chartered now supports institutional custody of Ripple USD issued on the XRP Ledger, giving eligible clients access to the bank's digital asset custody infrastructure. The service is available through Standard Chartered Bank's DIFC Branch, which is regulated by the Dubai Financial Services Authority. The collateral element is not yet in place: LMAX Group, Ripple and Standard Chartered said they intend to enable RLUSD as eligible collateral for agreed LMAX Group products and solutions across trading and collateral management, and are working to extend Standard Chartered's collateral mirroring model to LMAX Group.
How the mirroring arrangement is described
Under the proposed framework, the value of eligible collateral would be mirrored to LMAX Group without the underlying RLUSD being transferred directly to the trading venue. The companies say this is expected to give institutional clients greater flexibility in how they hold and deploy digital assets for trading, and to help reduce transfer-related operational risk, optimise counterparty exposure and improve capital efficiency. Those outcomes are the parties' stated expectations for an arrangement still to be implemented, not observed results from a live service.
Conditions and open details
The announced future capabilities remain subject to final documentation, successful testing, applicable laws and regulations, internal approvals and jurisdictional readiness. The parties said further details will be announced as implementation progresses. The announcement did not specify which LMAX Group products would accept RLUSD as collateral, when that capability would go live, or the eligibility criteria for clients using the custody service.
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