Standard Chartered has launched institutional custody services for Ripple USD (RLUSD), Ripple’s U.S. dollar-backed stablecoin, on the XRP Ledger, expanding its digital asset services in the United Arab Emirates. The service is offered through the bank’s branch in the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority.
Alongside the custody launch, Standard Chartered is working with Ripple and LMAX Group to make RLUSD eligible as collateral for selected LMAX products. The proposed arrangement is intended to give institutional clients another way to deploy stablecoins in trading activities while keeping their assets under established custody arrangements.
The initiative combines Standard Chartered’s institutional custody services, Ripple’s RLUSD stablecoin and LMAX Group’s trading infrastructure to expand the use of digital assets as collateral in institutional markets.
The planned integration builds on Standard Chartered’s collateral mirroring model, which allows the value of eligible assets held in custody to be reflected at a trading venue without requiring the underlying assets to be transferred directly to that venue.
The arrangement remains subject to final documentation, technical testing, regulatory requirements and internal approvals. The companies have not announced a launch date for the collateral service.
Collateral mirroring targets institutional demand
Under the proposed model, eligible RLUSD held by Standard Chartered would have its value mirrored to LMAX Group for use as collateral in supported products. This structure is designed to separate asset custody from trading access, potentially allowing institutions to manage collateral without moving the underlying stablecoins to the trading platform.
The approach could offer institutional investors greater flexibility in managing digital asset holdings, accessing liquidity and meeting collateral requirements. It also reflects an effort by financial institutions to adapt established custody and risk-management practices to digital asset markets.
Waqar Chaudry, Standard Chartered’s global head of digital assets, said institutional clients wanted to participate in digital asset markets while maintaining appropriate safeguards for their holdings and effective risk controls. He highlighted the need for infrastructure that enables secure asset storage, access to liquidity, and more efficient collateral deployment.
Jack McDonald, Ripple’s senior vice president of stablecoins, said RLUSD was developed to support institutional use cases. He indicated that combining the stablecoin’s availability on the XRP Ledger with Standard Chartered’s custody capabilities and LMAX Group’s trading infrastructure could help institutions use stablecoins across international markets.
RLUSD is designed to maintain a value equivalent to one U.S. dollar. Its potential use as collateral would add another application beyond payments and transfers, although eligibility will depend on the products supported and the completion of the planned integration.
Standard Chartered expands digital asset custody
The Dubai launch forms part of Standard Chartered’s broader expansion into institutional cryptocurrency custody. In early October 2026, the bank’s Singapore unit announced plans to introduce institutional crypto custody services by the end of the year.
The planned Singapore offering would extend the bank’s existing custody presence in the United Arab Emirates, Luxembourg and Hong Kong. The expansion reflects growing efforts by traditional financial institutions to provide regulated infrastructure for clients seeking exposure to digital assets.
Institutional custody services are designed to safeguard digital assets and support operational requirements such as transaction processing, asset administration and risk management. Such services can be important for investment firms and trading businesses that require established controls when handling cryptocurrencies and stablecoins.
Zodia Custody relationship undergoes changes
Standard Chartered has also been reassessing its relationship with Zodia Custody, an institutional digital asset custodian it established with Northern Trust in 2020.
In April 2026, reports indicated that Standard Chartered was considering integrating parts of Zodia into its corporate banking division. The following month, the bank said a nonbinding offer had been accepted, although the available information did not establish that the proposed restructuring had been completed.
Zodia has operated in Singapore since September 2023 and subsequently expanded into Hong Kong. In June 2026, the company secured a payment institution license in Luxembourg, enabling it to provide regulated stablecoin custody and transfer services across the European Union.
Standard Chartered’s expanding custody footprint and its planned RLUSD collateral arrangement highlight the growing convergence of traditional banking infrastructure, stablecoins and institutional digital asset trading. The extent of adoption will depend on regulatory approvals, operational readiness, and institutional demand for using stablecoins in collateral management.
