Global bank giant Standard Chartered now offers institutional custody of Ripple’s USD-pegged stablecoin RLUSD on the XRP Ledger through its Dubai branch, giving eligible clients a regulated bank to hold the dollar-pegged stablecoin.
The bank, with nearly $450 billion in assets under management, also plans to work with Ripple and LMAX Group, an institutional trading venue for foreign exchange and digital assets, so clients can use RLUSD held at Standard Chartered as collateral for trading on LMAX’s platform. That part of the arrangement is not yet live and remains subject to documentation, testing, regulatory requirements and internal approvals, the bank said on Monday via email.
LMAX plans to allow clients to use RLUSD held at Standard Chartered to back trades, so they would not need to transfer the stablecoin to the venue.
That could appeal to banks, funds and other institutions that want to trade with stablecoins but do not want to leave the assets at a trading venue. It separates custody from execution: the bank holds the tokens and the venue accepts their value as collateral.
“Regulated custody connected to a global systemically important bank is becoming one of the most valuable pieces of infrastructure in digital assets,” said Joseph Goh, head of Asia-Pacific at Singapore-based crypto investment bank Areta.
Waqar Chaudry, Standard Chartered’s global head of digital assets, securities services and transaction services, said “institutional clients want to participate in digital asset markets without compromising on how their assets are safeguarded or how risk is managed.”
The move builds on Ripple’s effort to position RLUSD as a settlement and collateral asset for institutions.
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