Standard Chartered has begun offering institutional custody of Ripple’s RLUSD stablecoin at its Dubai International Financial Centre (DIFC) office, and the bank is working toward a partnership that would let clients post the token as collateral without transferring it to a trading venue.
Custody Service in Dubai
The British bank announced that its DIFC branch, regulated by the Dubai Financial Services Authority, now supports the storage of RLUSD – the dollar-linked stablecoin issued on the XRP Ledger. The service extends the bank’s digital-asset custody platform, which has been available in the region since 2024. RLUSD is backed by cash equivalents, U.S. government bonds and dollars, and it launched in December 2024 on both Ethereum and the XRP Ledger.
Collateral Mirroring with LMAX
Standard Chartered has joined a pending integration with LMAX Group, a London-based marketplace for currencies and crypto assets. The proposed model, called collateral mirroring, would allow the stablecoin to remain in the bank’s vault while a mirrored value is recorded on LMAX’s books. That mirrored amount could then be used to satisfy margin requirements for LMAX-offered products. The bank emphasizes that the tokens would never be transferred to the exchange, preserving custodial control.
Risk Management Benefits
Keeping RLUSD under the bank’s custody mitigates the risk of a counter-party default at an exchange. Should an exchange experience a failure, the client’s collateral would still be protected by Standard Chartered, a globally systemically important institution subject to stringent capital regulations. The arrangement aligns with institutional demand for secure participation in digital-asset markets.
Regulatory Context and Timeline
The Dubai regulator approved RLUSD in June 2025, clearing the way for the custody service. The LMAX integration is still subject to final documentation, testing and additional regulatory sign-offs, and no launch date has been disclosed. Standard Chartered previously became the first systemically important bank to enable direct minting and redemption of Circle’s USDC, highlighting its broader commitment to crypto-related infrastructure.
Why it matters
By offering custodial protection for a major stablecoin and planning a seamless collateral-mirroring solution, Standard Chartered is positioning Dubai as a hub for regulated digital-asset activity. The approach could attract more institutional participants seeking exposure to crypto markets while retaining traditional safeguards, potentially influencing how other banks design similar services.
