XRP has rebounded from a key support level of $1.32 following the announcement that Standard Chartered is partnering with Ripple and institutional trading platform LMAX Group to provide custody services for the Ripple USD (RLUSD) stablecoin. The agreement allows institutional clients trading on LMAX Group to store RLUSD directly with the multinational bank, bringing traditional banking infrastructure to Ripple's dollar-backed asset.
Standard Chartered Expands RLUSD Institutional Custody
The custody arrangement aims to provide institutional investors with enhanced risk management and asset protection while operating in digital asset markets. Waqar Chaudry, Global Head of Digital Assets at Standard Chartered, stated that institutional clients require established safety standards when accessing crypto markets. He highlighted that joining forces with Ripple and LMAX Group enables institutions to integrate digital assets into broader financial operations.
Data from RWA.xyz shows that RLUSD has expanded to a market capitalization of approximately $2.4 billion. Ripple has actively pursued licenses across key regulatory jurisdictions to facilitate payments and settlements using the stablecoin, complementing other developments such as recent integrations on the XRP Ledger. While expanded RLUSD utility could drive broader network activity, direct investment flows into XRP present a mixed picture.
ETF Inflows Slow as XRP Technicals Test $1.28 Key Support
Data from SoSoValue reveals that XRP-linked ETFs have registered approximately $12 million in net inflows during the current month. If this trajectory persists, monthly inflows will end below $30 million, marking a 75% drop compared to September totals. The slowing institutional demand coincides with broader market caution, as Bitcoin and XRP face mounting fear across global trading venues.
From a technical perspective, the bounce reinforces $1.32 as critical near-term support, aligning with XRP's 200-day exponential moving average. Analysts identify $1.28 as the final line of defense for the asset's recovery structure; a sustained breakdown below $1.28 would risk exposing a deeper decline toward $1. The Relative Strength Index (RSI) currently sits near 40, signaling weak momentum. If $1.28 holds, potential upside targets remain at $1.80 and $2.10 over the coming weeks.
Key Takeaways:
- Standard Chartered partnered with Ripple and LMAX Group to provide bank custody for RLUSD.
- RLUSD market capitalization reached $2.4 billion according to RWA.xyz data.
- XRP ETF inflows reached $12 million this month, pacing 75% below September levels.
- Technical support sits at $1.32 and $1.28, with upside targets at $1.80 and $2.10.
Why It Matters
Standard Chartered's involvement signals growing institutional willingness to custody bank-grade stablecoins, validating Ripple's corporate-focused ecosystem strategy. However, the widening gap between stablecoin adoption ($2.4 billion RLUSD market cap) and lagging spot XRP ETF demand ($12 million monthly inflows) shows that infrastructure growth has not yet translated into immediate buying pressure for the underlying token. Investors must watch whether holding the $1.28 support level can reignite momentum before a potential drop toward $1 occurs.
