Standard Chartered Adds Ripple USD Custody and Explores LMAX Collateral Deal
(4 hours ago) · 1 source · Summarized by CryptoBipto
Standard Chartered has begun offering custody services for Ripple USD (RLUSD), a stablecoin associated with Ripple. The bank is also reportedly in discussions with LMAX, a financial technology firm, regarding a potential collateral arrangement involving the stablecoin.
WHY IT MATTERS
A stablecoin is a type of cryptocurrency designed to hold a steady value, usually pegged to a traditional currency like the US dollar. Think of it like a digital dollar that can move on blockchain networks. When a major bank like Standard Chartered offers "custody" for a stablecoin, it means the bank is willing to securely store it on behalf of clients, much like how a bank holds cash in a vault. This is significant because it shows that large, established financial institutions are building services around crypto assets. The potential collateral deal with LMAX would mean RLUSD could be used as a deposit or guarantee when making trades, similar to how traders in traditional markets post cash or bonds as collateral. These developments illustrate how stablecoins are gradually being integrated into the existing financial system.
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- cointelegraph.com
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