Standard Chartered adds RLUSD custody

Standard Chartered has started offering institutional custody for Ripple USD (RLUSD), the dollar stablecoin issued by Ripple. The bank announced on 12 October 2026 that it now supports custody of RLUSD issued on the XRP Ledger through its branch in the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority.

What was announced

Alongside the custody service, Standard Chartered said it is working with Ripple and LMAX Group, an operator of institutional trading venues, to make RLUSD eligible as collateral. The plan is to extend the bank's collateral mirroring model to LMAX: the stablecoin stays with Standard Chartered, while its value is reflected at the trading venue so clients can trade against it.

The integration is still subject to final documentation, testing, regulatory requirements and internal approvals, and no launch date has been given.

About RLUSD

RLUSD launched in 2024 under the supervision of the New York State Department of Financial Services. It is issued on both the XRP Ledger and Ethereum and is backed by US dollar deposits, short-term US government bonds and cash equivalents. Its market capitalisation is around $2.4 billion, which places it among the ten largest stablecoins, according to DeFiLlama data.

Why custody matters

For large institutions, where an asset is held is often as important as the asset itself. Many funds and corporate treasuries are only allowed to hold assets with a regulated custodian, and they prefer not to move large sums to an exchange simply to trade. Keeping the stablecoin with a global bank while using its value elsewhere reduces the risk that comes with transfers and with leaving funds at a single trading venue.

How collateral mirroring works

In a typical trading set-up, an institution has to send cash or assets to a trading venue before it can trade, which leaves funds exposed if that venue runs into trouble. With collateral mirroring, the assets stay with a custodian bank, and the bank confirms their value to the venue, which then extends trading limits on that basis. If the client needs to settle a loss, the custodian moves only the amount required.

Applying this model to a stablecoin is a natural fit. Because RLUSD is designed to hold a steady dollar value and can move on a blockchain at any hour, it can serve as round-the-clock collateral for markets that never close, while the custody arrangement keeps it inside a regulated bank.

Why it matters for payments

Bank-grade custody is one of the steps that turns stablecoins from a trading tool into everyday financial infrastructure. When regulated banks hold and manage stablecoins, it becomes easier for businesses to use them for treasury, settlement and cross-border payments, and for those flows to connect with the wider banking system.

What to watch next

The main thing to watch is when the LMAX collateral link goes live, and whether Standard Chartered extends RLUSD custody beyond Dubai. Other global banks are also building stablecoin custody services, so more announcements of this kind are likely in the coming months.

What it means for ODIX Pay users

Bank custody makes stablecoins more familiar to large institutions, and the same dollar tokens are easy to reach for individuals too. If you are asking what is a stablecoin, it is a digital token built to keep a steady value, usually one US dollar. In the ODIX Pay app you can buy crypto with a credit card or debit card, choosing the dollar stablecoins USDT or USDC. Availability depends on your country, and every fee is shown before you confirm. See how to buy USDT and USDC with your card.