Standard Chartered has begun offering custody services for Ripple's RLUSD stablecoin on the XRP Ledger network. The bank also plans to let institutional clients use RLUSD tokens as collateral for trading, and is in talks with LMAX about a collateral arrangement, according to people familiar with the matter.
What Standard Chartered Is Now Offering
The custody service went live this week, allowing institutions to hold RLUSD securely with the bank. RLUSD is a stablecoin issued by Ripple that runs on the XRP Ledger, a blockchain that settles transactions in seconds. Standard Chartered's move makes it one of the first major banks to provide custody for a stablecoin built specifically for institutional use on that network.
The bank isn't just storing tokens. It's also building a way for clients to post RLUSD as collateral when they trade. That would let institutions use the stablecoin to back derivatives and other positions without converting to fiat first. The effort is separate from the custody launch but is part of the same push to integrate RLUSD into traditional trading workflows.
Why the XRP Ledger Connection Matters
RLUSD was designed to work on the XRP Ledger, which Ripple has pitched as a faster, cheaper alternative to Ethereum for moving value. Standard Chartered's custody support gives institutional investors a regulated place to park those tokens. It also signals that the bank is willing to handle assets native to the XRP ecosystem, not just mainstream cryptocurrencies like Bitcoin and Ether.
For Ripple, the partnership adds a blue-chip banking name to its stablecoin infrastructure. The company has been trying to position RLUSD as a compliant option for cross-border payments and collateral, competing with stablecoins like USDC and USDT. Having Standard Chartered as a custodian could make RLUSD more attractive to funds and trading firms that require a bank-grade storage solution.
The LMAX Talks and What's at Stake
Standard Chartered is also negotiating with LMAX, a London-based trading venue, to strike a collateral deal. If completed, the agreement would allow RLUSD to be used as margin or collateral on LMAX's exchange. That would be a significant step for the stablecoin, since collateral arrangements are often the first real test of whether a digital asset can function in mainstream trading.
LMAX is known for institutional-grade execution and has been expanding its digital asset offerings. A tie-up with Standard Chartered would give its clients a way to post RLUSD without selling it, potentially increasing demand for the token. The talks are ongoing and could still fall apart, one person said, asking not to be identified because the discussions are private.
What Banks Are Watching
Standard Chartered's move comes as more traditional financial firms warm to stablecoins, driven by client demand and clearer regulatory expectations in some jurisdictions. Custody is often the first service banks offer before moving into trading, lending, or collateral management. By starting with RLUSD on the XRP Ledger, the bank is betting that institutional interest in Ripple's ecosystem will grow.
Competitors are watching closely. If the LMAX deal goes through, it could encourage other exchanges and banks to accept RLUSD as collateral. That would give Ripple a stronger foothold in the market for tokenized collateral, which is still dominated by larger stablecoins. For now, Standard Chartered's custody service is live, and the collateral talks are ongoing. The next milestone would be a signed agreement with LMAX, which hasn't been announced yet.
