Ripple, a leading enterprise blockchain company, has taken a major leap in cementing its status within the institutional financial sector by appointing BNY Mellon as the primary custodian for the reserves supporting its U.S. dollar-pegged stablecoin, RLUSD.
BNY Mellon: A Trusted Name in Asset Custody
On July 9, Ripple formally announced that the Bank of New York Mellon, the oldest bank in the United States and a global leader in asset servicing, would safeguard the RLUSD reserves. These reserves are comprised solely of cash and short-term U.S. Treasuries, held in segregated, auditable accounts. This institutional-grade custody framework is designed to:
Provide robust transparency for RLUSD holders
Ensure liquidity and seamless redemption processes
Instill confidence among regulators, enterprises, and investors
Jack McDonald, Ripple’s SVP of stablecoins, emphasized that BNY Mellon’s “demonstrable custody expertise and strong commitment to financial innovation” were decisive factors in the partnership. Emily Portney, BNY Mellon’s global head of asset servicing, highlighted the bank’s excitement to “support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash for conversions, working closely with Ripple to advance the future of the financial ecosystem”.
Institutional Trust and Regulatory Alignment
This collaboration is not just about technical custody; it represents a significant vote of confidence from the world’s institutional banking sector in the stability and regulatory compliance of Ripple’s offerings. RLUSD is regulated by the New York Department of Financial Services and is designed to provide a fast, low-fee, and transparent means of settlement for enterprises operating across borders.
Ripple’s choice to work with BNY Mellon was strategic, aligning with its recent application for a national banking charter in the U.S. and its pursuit of a Federal Reserve master account. Achieving these milestones would allow Ripple to connect RLUSD reserves directly to central banking infrastructure, further integrating its operations with the existing financial system and elevating its legitimacy among traditional institutions.
A Surge in Institutional and Enterprise Adoption
Behind the BNY Mellon headline, Ripple has been quietly and methodically expanding its global network of institutional partners:
Switzerland’s Amina Bank is the first globally licensed institution to offer RLUSD custody and trading, allowing both retail and institutional users access to the stablecoin for real-time cross-border settlements within the EU’s regulatory framework.
In Asia, Ripple’s ongoing collaborations with SBI Holdings and Tranglo have led to surging On-Demand Liquidity (ODL) volumes, deepening Ripple’s reach in forex and payments.
Ripple’s ecosystem has attracted prominent enterprise users in regulated markets, reflecting growing trust in its compliance-first, scalable approach.
The partnership announcement has catalyzed renewed institutional and retail interest in Ripple and its digital assets. Following the news, XRP’s market capitalization surged, driven by expectations of further adoption in mainstream finance and speculation over future exchange-traded fund (ETF) inflows.
Market observers note that these advanced custody arrangements and the involvement of global banking leaders like BNY Mellon create a new standard for stablecoin security and transparency. They provide comfort to enterprises concerned about counterparty risk and liquidity in the digital asset space.
Ripple’s Expanding Vision
Ripple’s ambition extends beyond individual partnerships. The company is actively positioning RLUSD and the XRP Ledger as foundational layers for regulated finance, DeFi, and tokenization. The dual-chain nature of RLUSD—operating on both Ethereum and XRP Ledger—offers flexibility to suit different enterprise needs, and the company’s compliance initiatives are designed to future-proof its ecosystem against evolving regulations.
With its growing slate of institutional partners, regulatory wins, and marquee custody alliances, Ripple is rapidly closing the gap between the world of traditional and digital finance. As more global finance leaders join its network, Ripple is poised to shape the next chapter of the digital asset industry.
This development marks a defining moment for Ripple, with BNY Mellon’s custodianship of RLUSD solidifying its reputation in the eyes of regulators, enterprises, and institutional investors worldwide
