Standard Chartered launched institutional custody for Ripple USD on the XRP Ledger through its DIFC branch on 12 October. It is also working with Ripple and LMAX Group on a collateral-mirroring arrangement that would support agreed LMAX products without requiring the underlying RLUSD to move directly to the trading venue.[1]
The live custody service and planned collateral extension
| Component | Published position | Scope |
|---|---|---|
| RLUSD custody | Live. | Standard Chartered Bank, DIFC Branch; eligible institutional clients; XRP Ledger.Source 1 |
| LMAX collateral arrangement | Planned, subject to stated conditions. | Mirrors eligible RLUSD value for agreed LMAX products while tokens remain in custody; requires final documentation, successful testing, legal compliance, internal approvals and jurisdictional readiness.Source 1 |
| Pricing and collateral parameters | Not supplied in the announcement. | No general haircut schedule, eligible-product list or universal start date is disclosed.Source 1 |
The announcement follows a 16 September expansion of the Standard Chartered–LMAX relationship covering digital-asset custody in Luxembourg and DIFC, alongside earlier live trades under their prime-brokerage relationship. The October RLUSD custody service is specifically identified with Standard Chartered Bank’s DFSA-regulated DIFC branch.[2][1]
Reserve custody and client-token custody serve different purposes
Ripple selected BNY in July 2025 to custody RLUSD reserve assets. Standard Chartered’s new service holds eligible institutional clients’ RLUSD tokens. Reserve assets support the issuer’s stablecoin backing, while client custody governs the safekeeping and administration of tokens belonging to the customer.[3][1]
Ripple describes backing through dollar deposits, short-dated US Treasuries and cash equivalents, with reserve reports and attestations. Those disclosures address backing; token redemption rights, custody-account terms and a trading venue’s collateral treatment are separate parts of the holder’s legal and economic position. Holding a token in bank custody does not turn it into a bank deposit.[4]
Mirrored value needs a valuation and enforcement framework
In the planned arrangement, eligible collateral value would be recognised at LMAX while the tokens remain with the custodian. This can reduce the need to pre-position the same assets at an execution venue. Its operation depends on how the parties establish the recognised value, monitor margin and enforce rights if obligations are not met.[1]
The bank has not published a general collateral start date, haircut schedule or complete client tariff. A quantified estimate of funding savings will depend on those commercial terms as well as completion of the implementation conditions in the table.[1]
The practical milestone is therefore a live institutional custody route in DIFC, followed by work on collateral use across the custody and execution relationships. The extension’s value will depend on the amount of trading support recognised against the assets and the reliability of the margin, transfer and enforcement processes.
Sources & further reading
- Standard Chartered launches RLUSD custody and joins planned collateral integration with Ripple and LMAX Group Standard Chartered · 12 Oct 2026 · Accessed 20 Oct 2026
- Standard Chartered and LMAX Group expand partnership to digital-asset custody in Luxembourg and DIFC Standard Chartered · 16 Sep 2026 · Accessed 20 Oct 2026
- Ripple selects BNY to custody Ripple USD reserves Ripple · 9 Jul 2025 · Accessed 20 Oct 2026
- Ripple USD: stablecoin reserve and product description Ripple · Accessed 20 Oct 2026