Standard Chartered launches RLUSD custody on XRP Ledger

Standard Chartered said on Oct. 12 that it had launched institutional custody for Ripple USD (RLUSD) issued on the XRP Ledger, giving eligible clients access to the bank’s custody infrastructure. The service is available through its DIFC Branch, regulated by the Dubai Financial Services Authority, according to Standard Chartered’s announcement.

Where can institutions access the custody service?

Eligible clients can access RLUSD custody through Standard Chartered’s DIFC Branch in Dubai. The bank said the service is live for RLUSD issued on XRPL; it did not disclose client numbers, custody volumes or fees.

How could RLUSD be used with LMAX Group?

Standard Chartered, Ripple and LMAX Group plan to make RLUSD eligible collateral for agreed LMAX products and extend the bank’s collateral mirroring model to the trading group. Under that model, the value of eligible RLUSD collateral would be mirrored to LMAX without moving the underlying tokens directly to the venue, Standard Chartered said.

The proposed arrangement is intended to let institutional clients hold RLUSD in custody while using its value in trading and collateral management. The Block’s report also said the integration has no announced launch date.

When could the collateral integration go live?

The future capabilities remain subject to final documentation, successful testing, applicable laws and regulations, internal approvals and jurisdictional readiness, according to Standard Chartered. The bank said it would provide further details as implementation progresses.

Standard Chartered described the collaboration as a next phase in efforts to support institutional adoption of RLUSD. Ripple’s Jack McDonald, senior vice president for stablecoins, said the arrangement brings together the stablecoin on XRPL, the bank’s custody service and LMAX’s trading infrastructure.

Sources

• Standard Chartered’s announcement — sc.com
• The Block’s report — theblock.co