Standard Chartered offers RLUSD custody in Dubai and plans LMAX collateral link
Standard Chartered is partnering with Ripple and LMAX Group to offer institutional custody for the RLUSD stablecoin in Dubai. This arrangement allows institutional clients to use RLUSD held at the bank as collateral for trading on LMAX without needing to transfer the assets to the venue.
Why it matters
This development represents a significant step in bridging traditional banking infrastructure with digital asset markets, potentially increasing institutional adoption of stablecoins for trading.
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.
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