Standard Chartered Launches Custody for Ripple RLUSD Stablecoin in Dubai

Standard Chartered has launched custody services for Ripple’s RLUSD stablecoin through its Dubai International Financial Center branch on Oct. 12, allowing institutional clients to hold the asset under Dubai Financial Services Authority regulation. The launch forms part of a broader tri-party arrangement with institutional exchange operator LMAX to permit market participants to deploy RLUSD as trading collateral while keeping underlying tokens in bank custody.\n\n## Tri-Party Collateral Integration with LMAX\n\nUnder the proposed model, Standard Chartered will mirror the valuation of eligible RLUSD holdings directly to LMAX. This structure enables institutions to support active market positions across spot digital assets, perpetual futures, and contracts for difference without transferring tokens directly onto the exchange venue. By retaining assets within a tier-one banking balance sheet, institutional participants can mitigate counterparty settlement risk and operational friction while managing collateral.\n\nThe integration builds upon a multiyear agreement established in January, when Ripple provided a $150 million financing commitment to expand RLUSD adoption across LMAX's trading architecture. Waqar Chaudry, global head of digital assets in Securities Services at Standard Chartered, noted that institutional investors increasingly demand entry into digital asset markets without compromising strict risk management and asset safeguarding standards. Implementation of the live collateral feature remains subject to final technical testing, documentation, and regulatory approvals.\n\n## Rapid Supply Expansion Across XRPL and Ethereum\n\nThe custody rollout follows accelerated issuance for Ripple's dollar-pegged stablecoin. According to RWA Foundation metrics, Ripple generated the second-largest net gain in stablecoin capitalization during the third quarter, expanding by $765.3 million over a 90-day period. This growth placed Ripple just behind Circle's USDC, which added $915 million, and ahead of United Stables at $474.2 million, even as broader stablecoin supply contracted.\n\nData compiled by DeFiLlama indicates total circulating RLUSD supply has scaled to approximately $2.4 billion. Of this balance, $1.14 billion is issued natively on the XRP Ledger (XRPL), while $1.3 billion resides on Ethereum.\n\n### Key Takeaways\n\n- Standard Chartered introduced RLUSD custody via its DFSA-regulated branch in the Dubai International Financial Center.\n- Institutional clients can mirror RLUSD held at the bank to LMAX as collateral for spot, futures, and CFD positions.\n- RLUSD circulating supply reached $2.4 billion, with $1.14 billion on XRPL and $1.3 billion on Ethereum.\n- Ripple recorded $765.3 million in quarterly market cap growth, ranking second behind USDC's $915 million.\n\n## Why It Matters\n\nInstitutional adoption of stablecoins has historically been constrained by the exchange counterparty risk associated with pre-funding trading accounts. By combining regulated banking custody with off-exchange collateral mirroring, Standard Chartered and Ripple are lowering structural barriers for traditional asset managers entering digital asset derivatives. If successfully operationalized, this framework could establish RLUSD as a primary liquidity bridge between legacy banking rails and institutional crypto trading venues.