Ripple has announced that BNY Mellon will serve as the primary custodian for the cash reserves backing its new stablecoin, RLUSD. This strategic collaboration is part of Ripple’s broader move toward regulatory compliance and a stronger foothold in the financial services sector, as the company also seeks a U.S. banking license.
BNY Mellon, a globally recognized financial institution with deep roots in digital asset custody, will oversee the safeguarding of RLUSD’s U.S. dollar reserves. The bank will also facilitate fund flows during issuance and redemption, a crucial component in ensuring liquidity and user trust in the stablecoin.
With assets under custody totaling around $2 trillion, BNY Mellon’s involvement lends institutional-grade security and credibility to Ripple’s stablecoin efforts. The partnership also includes transaction banking services to support stablecoin operations and settlement processes.
The announcement led to a notable boost in XRP’s value, with the cryptocurrency rising over 7% in early trading, marking its highest point in the past month. Investors responded positively, viewing this as a strong sign of Ripple’s deepening ties with the traditional banking system.
Ripple has emphasized that RLUSD is designed primarily for enterprise use, such as facilitating cross-border payments and improving treasury operations for businesses, rather than for individual retail transactions. This focus on institutional functionality aligns with the company’s long-term strategy.
The decision to work with a major custodian reflects Ripple’s intent to bridge the gap between blockchain technology and traditional finance. By integrating with established banking infrastructure and aiming for direct access to the U.S. Federal Reserve through a master account, Ripple is setting the stage for RLUSD to become a trusted, compliant, and scalable digital asset.
As more global companies express interest in stablecoins for operational efficiency, Ripple’s latest move positions it as a leading player in the enterprise-grade digital currency space.
