Standard Chartered has officially launched institutional custody services for Ripple’s RLUSD stablecoin on the XRP Ledger network through its Dubai branch. The bank, which manages nearly $450 billion in assets, has begun holding the US dollar-pegged token directly under banking regulatory supervision.
The bank is now preparing a tripartite partnership with Ripple and LMAX Group, designing a mechanism that allows clients to use their bank-held RLUSD balances as collateral for trading on LMAX platforms.
Trading on Exchanges Without Transferring Coins
Through the planned collateral structure, institutional investors can execute orders on the LMAX exchange without having to deposit their crypto into trading venues. This segregation model keeps assets securely in bank accounts while trading activity takes place.
The collateral integration with LMAX is not currently active. Standard Chartered and its partners are still finalizing documentation, system testing, regulatory approvals, and internal verification before releasing it to the market.
In January 2026, Ripple provided $150 million in financing to LMAX Group. That capital injection was part of plans to integrate RLUSD into LMAX’s trading infrastructure, including its institutional trading segment.
Waqar Chaudry, global head of digital assets at Standard Chartered, emphasized that “institutional clients want to participate in the digital asset market without compromising how their assets are safeguarded or how risk is managed.”
Custody Footprint from Hong Kong to Singapore
In Asia, Standard Chartered has already built a track record in digital assets. Last August, the institution became the first bank to distribute one of the two licensed stablecoins in Hong Kong.
After completing its full acquisition of Zodia Custody, the bank is also preparing to offer custody services for crypto assets, stablecoins, and tokenized real-world assets to corporate clients in Singapore.
Separation of Custody and Execution Venues
The separation between independent custodians and trading venues addresses a classic concern among major investors. Painful experiences across the crypto industry have shown the significant risk of losing control when capital is deposited directly into exchange wallets.
Joseph Goh of Areta highlighted the strategic value of banking integration: “Licensed custody connected to a global systemic bank is one of the most valuable pieces of infrastructure in digital assets.”
For corporate investors, the collaboration between Standard Chartered, Ripple, and LMAX showcases a new industry standard: crypto liquidity transactions can now be executed without abandoning banking prudence protocols.
Reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
