Planned collateral integration enables trading without transferring $RLUSD
Ripple's $RLUSD stablecoin has gained support from Standard Chartered, which launched institutional custody services on the $XRP Ledger on October 12, advancing plans to integrate the token into LMAX Group's trading infrastructure.
The development builds on Ripple's $150 million financing agreement with LMAX announced in January. The three companies are now working toward a system that would allow financial institutions to use $RLUSD as trading collateral without moving their tokens directly onto an exchange.
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According to Standard Chartered's announcement, custody is already operational, while the additional collateral capabilities require further testing and approvals.
Standard Chartered Launches $RLUSD Custody on $XRP Ledger
Standard Chartered is offering $RLUSD custody through its Dubai International Financial Centre branch, regulated by the Dubai Financial Services Authority.
Eligible institutional clients can now hold $RLUSD issued on the $XRP Ledger within the bank's existing digital asset custody infrastructure. The service brings an established global bank into Ripple's growing stablecoin ecosystem.
The more significant development involves what institutions could eventually do with those holdings.
Under the proposed collateral-mirroring arrangement, Standard Chartered would report the value of eligible $RLUSD holdings to LMAX, allowing clients to deploy collateral for agreed trading products without transferring the underlying tokens to the trading venue.
For example, an institution holding $10 million in $RLUSD at Standard Chartered could potentially use eligible holdings to support trading positions on LMAX while maintaining bank custody. The actual amount recognized would depend on future contractual terms and risk requirements.
$RLUSD could enable trading without leaving bank custody.
Ripple's $150M LMAX Partnership Enters New Phase
Ripple announced its LMAX partnership on January 15, committing $150 million in financing to support the trading group's long-term expansion.
The agreement envisioned $RLUSD serving as collateral and a settlement currency across spot cryptocurrency trading, perpetual futures and contracts for difference.
Today's announcement adds another component: custody through Standard Chartered, alongside a proposed mechanism connecting bank-held $RLUSD to LMAX's marketplace.
That distinction matters because institutions frequently separate asset custody from trade execution to manage operational and counterparty risks.
The companies have not announced when the collateral integration will go live. Implementation remains subject to final documentation, testing, regulatory requirements and internal approvals.
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