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ZEC $1,241 Standard Chartered opens Dubai vaults for Ripple's RLUSD stablecoin
The bank launches institutional custody in the UAE as Ripple rebalances token liquidity across blockchains.
Key takeaways
- Custody live now. Standard Chartered launched institutional RLUSD custody on October 12 through its DIFC Dubai branch.
- Major rebalancing move. Ripple minted $38.6M RLUSD on Ethereum while burning $50.6M on the XRP Ledger for a net $12M supply reduction.
- Collateral model pending. LMAX integration is still subject to testing, documentation, and regulatory approval.
What happened
Standard Chartered announced institutional custody for RLUSD through its Dubai International Financial Centre branch, becoming the first major bank to offer bank-grade vaults for the Ripple stablecoin. The custody service launched October 12 and is regulated by the DFSA.
The bank is pursuing a collateral integration with LMAX Group that would allow institutions to use RLUSD as eligible collateral on LMAX trading systems. Under this model, tokens remain with Standard Chartered while their value mirrors to LMAX's platform, eliminating transfer-related counterparty risk. The integration is pending final documentation, testing, and regulatory approval.
Ripple Treasury executed a coordinated rebalancing of RLUSD supply across blockchains. The firm minted $38.6M in new RLUSD on Ethereum through two transactions, while simultaneously executing three burns totaling $50.6M on the XRP Ledger. The net effect was a $12M reduction in total circulating supply.
According to Ripple's SVP of Stablecoins Jack McDonald, the custody move aligns with RLUSD's original design for institutional use cases. Luke Dorney, Head of Custody at LMAX Group, described RLUSD as an increasingly important component of institutional digital asset markets.
First $1.00Latest $1.00+0.0% over the period
Points are daily observations, not closing prices.
Why it matters
Bank-grade custody removes a major barrier to institutional participation in stablecoin markets. Waqar Chaudry, Global Head of Digital Assets at Standard Chartered, noted that institutional clients seek to participate in digital asset markets without compromising on asset safeguarding or risk management.
The Ethereum-focused minting and XRP Ledger burning pattern reflects real market demand. Treasury mints follow actual customer USD deposits, not free supply inflation. The rebalancing toward Ethereum points to institutional demand on decentralized finance platforms.
This custody announcement represents a strategic escalation in RLUSD's path toward institutional adoption since the stablecoin launched in 2024 under NYDFS regulation. RLUSD now has both regulatory backing and custody infrastructure designed for professional investors.
What the data shows
RLUSD held a market capitalisation near $2.42 billion as of reporting time, with the token maintaining its dollar peg. The stablecoin has demonstrated rapid scale since its 2024 launch.
Questions readers ask
What is Standard Chartered's RLUSD custody service?
Standard Chartered launched bank-grade custody for RLUSD through its DIFC branch in Dubai on October 12, regulated by the DFSA. The service holds RLUSD for institutional clients and integrates with LMAX Group's trading platform.
Why did Ripple mint and burn RLUSD at the same time?
Ripple minted $38.6M on Ethereum to meet DeFi demand while burning $50.6M on the XRP Ledger to rebalance supply. The net $12M reduction reflects liquidity shifting toward Ethereum and institutional counterparties operating on Ethereum rails.
What is the LMAX collateral model?
The planned integration allows institutions to use RLUSD as eligible collateral on LMAX trading systems without transferring tokens. Tokens stay with Standard Chartered while their value mirrors to LMAX's platform, reducing operational costs and counterparty risk. The integration is subject to testing and regulatory approval.
How large is RLUSD now?
RLUSD held a market capitalisation near $2.42 billion and has maintained its dollar peg since launching in 2024 under NYDFS regulation.
