Standard Chartered has begun holding Ripple’s RLUSD stablecoin on the XRP Ledger, according to a recent video by Kamilah Stevenson, a prominent analyst who covers wealth and banking.
Her focus is what comes next: a proposed arrangement allowing institutional clients to trade against those holdings without transferring their collateral to a trading venue.
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The distinction matters. Bank custody is one service; making those assets available to support trading could give institutions another reason to hold and use stablecoins.
The bank holds the collateral; clients trade elsewhere
Dr. Kamilah Stevenson says the custody service operates through Standard Chartered’s Dubai International Financial Centre branch, regulated by the Dubai Financial Services Authority. The trading arrangement involves Ripple and LMAX, the institutional currency and crypto trading operator.
Under the proposed “collateral mirroring” model, clients’ RLUSD would remain at Standard Chartered while the bank communicates their available collateral to LMAX. Clients could then trade against it, reducing the need to leave assets directly with the trading platform.
There is an important timing distinction: Dr. Stevenson describes custody as live, but says the LMAX arrangement still requires testing, legal reviews and regulatory approvals. It should not be treated as an operating trading service yet.
RLUSD adoption does not automatically mean XRP demand
“XRP itself isn’t named in the deal,” Dr. Stevenson acknowledges. The immediate asset involved is RLUSD, Ripple’s dollar-pegged stablecoin—not XRP.
The ledger connection creates some XRP usage: accounts require XRP reserves, and transaction fees are paid in XRP and burned. Those amounts are small, a limitation the host explicitly recognizes.
Her broader argument is that approving the XRP Ledger for custody could make future services on the network easier for a bank to consider. She also connects the arrangement to Ripple’s wider interest in collateral, citing discussions about XRP-backed lending and its prime-brokerage business.
That remains a strategic interpretation, not evidence that Standard Chartered has agreed to accept XRP as collateral. For investors, the more concrete development is institutional infrastructure around RLUSD; any larger effect on XRP depends on services that actually require meaningful holdings of the token, rather than simply operating on its ledger.
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