Standard Chartered Launches RLUSD Custody, Plans Collateral Model

Standard Chartered has launched institutional custody for Ripple USD (RLUSD) through its DIFC branch, regulated by the Dubai Financial Services Authority. This service went live on October 12. The bank is also collaborating with Ripple and LMAX Group to develop a collateral model that allows the value of eligible RLUSD holdings to be mirrored to a trading venue without transferring the underlying tokens. This approach aims to minimize asset movement between custodians and trading venues as trading capacity changes. While custody is now available for eligible clients, the collateral integration is still pending documentation, testing, approvals, and jurisdictional conditions. This distinction is crucial, as reporting the entire plan as live would misrepresent the current status. In the institutional stablecoin market, the ability to manage collateral mobility and operational control is vital for large trading firms considering the use of digital dollars.

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