Standard Chartered Begins RLUSD Custody, Plans Collateral Use Test
(3 hours ago) · 1 source · Summarized by CryptoBipto
Standard Chartered has started providing custody services for RLUSD, a stablecoin associated with Ripple. The bank is now preparing a separate test to explore using RLUSD as collateral in financial transactions.
WHY IT MATTERS
Think of custody like a bank vault: when a large bank agrees to store and protect a digital asset, it signals a level of institutional involvement that did not exist in crypto's early days. RLUSD is a stablecoin, which is a type of cryptocurrency designed to maintain a steady value, usually pegged to a traditional currency like the US dollar. If a stablecoin can also be used as collateral — meaning it can be pledged as a guarantee when borrowing money or making trades — it becomes more useful in the broader financial system. This story matters because it shows how traditional banks are experimenting with crypto assets in ways that could eventually affect how money moves between the old and new financial worlds.
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