Standard Chartered Bank has launched institutional custody services for Ripple USD ( RLUSD ).

This banking giant stated that it has launched an institutional custody service for Ripple USD ( RLUSD ) on XRP Ledger. Eligible customers will be able to securely hold this stablecoin through this bank.

This move also paves the way for a planned collaboration. Under this collaboration, Ripple, Standard Chartered Bank, and LMAX Group will enable institutions to use RLUSD as a trading collateral without the need to transfer tokens to an exchange.

Standard Chartered launches RLUSD custody in Dubai

In a recent press release, Standard Chartered Bank announced that its custody services for Ripple USD ( RLUSD ) on XRP Ledger ( XRPL ) are now available.

This service is provided through Standard Chartered's branch located at the Dubai International Financial Centre ( DIFC ), which is regulated by the Dubai Financial Services Authority ( DFSA ).

This service allows eligible institutional clients to hold and manage RLUSD through Standard Chartered's digital asset custody infrastructure.

Ripple, the Senior Vice President of Stablecoins, Jack McDonald stated: " RLUSD is precisely designed for such institutional use cases."

At the same time, Waqar Chaudry, the global head of Standard Chartered's digital assets, stated: "Institutional clients wish to participate in the digital assets market without compromising on asset protection methods and risk management."

Ripple and LMAX plan to use RLUSD as collateral.

The next step will involve the LMAX Group of the trading market operated by the institution.

According to the planned arrangements, customers can store RLUSD with Standard Chartered and use its value as collateral on the LMAX platform without the need to directly transfer the tokens to the trading platform.

However, this service still requires a final agreement, testing, and regulatory approval.

LMAX Group, the person in charge of the custody business, and Luke Dorney stated that this arrangement will provide customers with "greater flexibility" in holding and using RLUSD.

Standard Chartered Expands Stablecoin Services

Standard Chartered is still expanding its digital asset business beyond the United Arab Emirates and plans to launch stablecoin custody services for institutional clients in Singapore by the end of 2026.

However, Standard Chartered's RLUSD collateral services for LMAX have not yet been launched. Their launch still depends on testing, regulatory approval, and other necessary checks.

The content of this article is based on reports from CoinPedia and statements from related companies.