More on Standard Chartered adding RLUSD custody in Dubai, eyes LMAX collateral link for clients

<p dir="ltr">The announcement is more a signal about market structure than a price catalyst. Bank custody does not create direct demand for RLUSD or for XRP, and traders should not read it that way. The bigger question is competition. If regulated banks start offering off-exchange margin, smaller stablecoins with bank backing could win institutional business that has so far gone to the largest tokens. Venues may also come under pressure to offer similar setups once a mirrored model proves itself, which could change how collateral moves across crypto trading.</p><p dir="ltr">---</p><p dir="ltr">Earlier:</p><ul><li><a href="https://investinglive.com/education/standard-chartered-custody-for-ripple-s-rlusd-what-custody-and-collateral-mirroring-mean-for-traders" rel="follow" target="_blank">Standard Chartered custody for Ripple’s RLUSD: what custody and collateral mirroring mean for traders</a></li></ul><p dir="ltr"></p><p dir="ltr"></p><p dir="ltr">---</p><p dir="ltr"> Standard Chartered is offering to hold Ripple’s stablecoin and let clients trade against it without the tokens ever reaching an exchange, but the trading half of that promise still needs regulators to sign off.</p><p dir="ltr">Summary:</p><ul dir="ltr"><li>Standard Chartered now offers institutional custody of RLUSD on the XRP Ledger through its DIFC branch, regulated by the DFSA.</li><li>A planned integration with LMAX Group would make RLUSD eligible collateral on agreed LMAX products through “collateral mirroring.”</li><li>Under mirroring, the tokens stay at the bank while LMAX credits their value toward client positions.</li><li>The LMAX leg is not live and still needs final documentation, testing and regulatory approval, with no launch date given.</li><li>RLUSD has a market value of about $2.45 billion, under 1% of a roughly $306 billion stablecoin market.</li><li>The bank has offered crypto custody in Dubai since 2024 and in July began letting institutions mint and redeem USDC directly.</li></ul><p dir="ltr"> Standard Chartered has begun offering institutional custody for Ripple’s dollar-backed stablecoin RLUSD through its branch in the Dubai International Financial Centre, and is preparing a link with LMAX Group that would let clients use the tokens as trading collateral without moving them off the bank’s books. The British lender said on Monday that eligible clients can now hold the XRP Ledger version of RLUSD on its digital asset custody infrastructure, with the service run from its DIFC branch under the supervision of the Dubai Financial Services Authority.</p><p dir="ltr">The second part of the announcement is the more consequential, though it is not yet operational. Standard Chartered has joined a planned integration with LMAX, the London-based currency and crypto marketplace, that would make RLUSD eligible margin on agreed LMAX products. Under a structure the bank calls collateral mirroring, the stablecoin would remain in custody at Standard Chartered while LMAX receives a mirrored record of its value that counts toward a client’s positions. The bank said the arrangement still depends on final documentation, testing and regulatory sign-off, and it gave no date for when clients will be able to post RLUSD as margin.</p><p dir="ltr">The design is aimed at the counterparty risk that comes with leaving collateral on a trading venue. If an exchange were to fail under the mirrored model, the client’s tokens would still be held at Standard Chartered, one of 29 banks the Financial Stability Board treats as globally systemically important and subjects to tougher capital requirements. Waqar Chaudry, who leads digital assets within the bank’s securities services business, said institutions want exposure to digital asset markets without weakening the protection around their holdings.</p><p dir="ltr">RLUSD, which Ripple launched in December 2024 on Ethereum and the XRP Ledger, is backed by US dollars, US government bonds and cash equivalents. It received approval from the Dubai regulator in June 2025 and has grown to a market value of roughly $2.45 billion, still under 1% of a stablecoin market worth about $306 billion.</p><p dir="ltr">The move extends a broader push by the bank into digital assets. Standard Chartered has provided crypto custody in Dubai since 2024, and in July said it had become the first global systemically important bank to let institutions mint and redeem Circle’s USDC directly. The timing and terms of LMAX approval will now determine whether the mirroring model moves from concept to a working margin product.</p><p dir="ltr"></p><p dir="ltr"></p> This article was written by Eamonn Sheridan at investinglive.com.