As per the recent announcement, the service is offered via the bank’s branch located in the Dubai International Financial Centre (DIFC). This facility enables qualifying corporate clients to securely store their digital assets within the bank’s custodial framework.
Furthermore, the bank revealed that it is collaborating with Ripple and LMAX Group to facilitate the acceptance of $RLUSD as a form of collateral under its Collateral Mirroring model. This initiative also aims to enhance Standard Chartered’s current Collateral Mirroring setup with LMAX Group.
The primary goal of this model is to allow assets to be maintained within a custodian institution, while the associated balances can be utilized as collateral on a trading platform. This innovation provides institutions with the ability to tap into liquidity and mitigate counterparty risks without moving their assets to trading venues.
Implications for the Institutional Cryptocurrency Sphere
This advancement presents significant opportunities to broaden the application of $RLUSD in institutional custody, collateral management, and transactional activities. The earlier partnership announced between Ripple and LMAX Group is also geared towards enhancing the stablecoin’s presence in institutional trading environments.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, commented: “$RLUSD has been specifically designed for these institutional scenarios. Our clients seek the advantages of a regulated stablecoin while maintaining the custody standards they trust. By integrating $RLUSD on the $XRP Ledger with the custodial capabilities of Standard Chartered and the transactional infrastructure of LMAX Group, we are paving the way for institutions to effectively utilize stablecoins in global markets.”
*This should not be considered as investment advice.