XRP Bounces Off $1.32 After Standard Chartered Custody Deal for RLUSD

Key points

• XRP recovered from $1.32 after reports that Standard Chartered is part of an RLUSD custody deal.
• Under the arrangement between Ripple and LMAX, institutional clients can deposit RLUSD with Standard Chartered for custody.
• XRP-linked ETFs have drawn roughly $12 million in net inflows during October, a figure well below September's level.

The digital asset climbed off the $1.32 support level as market participants weighed a custody agreement that includes Standard Chartered, Ripple and LMAX Group.

Revealed on Monday, the pact enables LMAX clients to hold Ripple USD (RLUSD) at Standard Chartered, giving their stablecoin operations banking-level custody.

This move bolsters Ripple's push into institutional finance, but XRP's chart-based outlook stays cautious and ETF investment has weakened.

Standard Chartered Adds Bank Custody Capabilities for RLUSD

The agreement is designed to offer institutional investors more flexibility in protecting RLUSD and controlling risk.

Waqar Chaudry, Standard Chartered’s Global Head of Digital Assets, stated that clients seek entry into digital asset markets without compromising traditional asset-protection norms.

He further noted that merging the bank's strengths with Ripple and LMAX may assist institutions in integrating digital assets into their wider financial operations.

The pact relates specifically to RLUSD custody. How it affects XRP hinges on whether wider ecosystem use drives demand for the token.

Data from RWA.xyz shows RLUSD's market cap has reached about $2.4 billion.

Additionally, Ripple has sought regulatory approvals in major markets to back payments and other services that use the stablecoin for settlements.

This deal with Standard Chartered gives Ripple another institutional link. Broader RLUSD adoption might boost activity on the XRP Ledger, creating more avenues for payments and financial uses.

Yet the trajectory of stablecoin expansion and XRP investment flows diverges at present.

According to SoSoValue, XRP ETFs have seen roughly $12 million in net inflows so far this month.

Should that rate persist, October's total inflows might end up under $30 million, a decline of about 75% from September.

The forecast relies on the remaining days of October, but existing numbers indicate that institutions have grown more wary as XRP corrected.

For a more robust rebound, renewed buying interest would need to accompany the ecosystem's custody and payments progress.

XRP Price View: $1.28 Level Decisive for Bounce

The recent recovery underscores $1.32 as a key short-term support. The 200-day exponential moving average is positioned close to that mark, according to technical analysts.

If the price falls more, $1.28 could become the next target. An analyst considers that level the last support for a recovery; a lasting dip beneath it might open the door to a drop toward $1.

The Relative Strength Index has slid to approximately 40, signaling weak momentum. However, that figure by itself does not prove that selling has ended or that a bounce is close.

If $1.28 holds, XRP keeps an upward objective of $1.80 in the next few weeks, then $2.10 if buying pressure picks up. These targets are still provisional as XRP tries to steady itself following the downturn.