Standard Chartered’s Live RLUSD Custody Sets Up a Separate Collateral Test
TL;DR: Standard Chartered now helps eligible institutional RLUSD custody by means of its DIFC department; a separate LMAX collateral association is deliberate.
The distinction between holding a stablecoin and utilizing it as buying and selling collateral is the centre of a new Standard Chartered association. The financial institution stated on October 12 that institutional custody for Ripple USD on the XRP Ledger is reside by means of its DIFC department, which is regulated by the Dubai Financial Services Authority.
Alongside that service, Standard Chartered is working with Ripple and LMAX Group on a collateral mannequin. The proposed association would permit the worth of eligible RLUSD holdings to be mirrored to a buying and selling venue with out sending the underlying tokens there immediately. In precept, that reduces the necessity to transfer belongings between custodians and venues each time buying and selling capability adjustments.
The distinction in timing issues. Custody has launched for eligible shoppers; the expanded collateral integration stays topic to documentation, testing, approvals and jurisdictional situations. Reporting your entire plan as reside would overstate the announcement.
For the institutional stablecoin market, the idea is extra consequential than a new trade itemizing. Collateral mobility, publicity to counterparties and operational management decide whether or not giant buying and selling corporations use digital {dollars} at scale. A stablecoin’s attraction relies upon as a lot on the place it may be safely held and pledged as on the velocity at which it may be transferred.
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