SC Bank Launches Custody Service for Ripple's RLUSD

SC Bank has launched a custody service for Ripple's dollar stablecoin RLUSD (Ripple USD). This service provides custody for RLUSD issued on the XRP Ledger (XRPL) to institutional clients and is offered through SC Bank's Dubai International Financial Centre (DIFC) branch, which is regulated by the Dubai Financial Services Authority (DFSA). SC Bank is working with Ripple and LMAX Group to explore the use of RLUSD as collateral for trading. The key is to allow institutions to utilize RLUSD held at the bank as collateral without having to transfer it directly to an exchange. To achieve this, SC Bank plans to implement a 'Collateral Mirroring' method that reflects the value of collateral assets to LMAX Group. Once this method is introduced, institutional investors can keep RLUSD at the bank while using it as collateral for agreed trading products and services with LMAX Group. SC Bank expects to reduce operational risks arising from asset transfer processes, manage counterparty risk exposure, and enhance capital efficiency through this initiative. The head of global digital assets at SC Bank stated that institutional clients want to participate in the digital asset market without sacrificing asset protection and risk management.

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