Ripple Taps BNY Mellon for Custody RLUSD Reserves: What It Means

BNY partners with Ripple for RLUSD Custody

Key Insights

• Ripple and BNY partner with the Banks as the custodian for RLUSD

• BNY will store RLUSD reserves and handle transaction flows

Ripple and BNY Mellon Partners

Ripple has made a big move. It selected Bank of New York Mellon (BNY) as the primary custodian for RLUSD reserves. This isn't just another stablecoin partnership. It marks a shift in how traditional finance and crypto work together.

Why This Partnership Matters

BNY Mellon is the oldest bank in the U.S. It manages over $53 trillion in assets. Now it will handle RLUSD. Ripple launched RLUSD in late 2024. It's a U.S. dollar-pegged stablecoin made for institutions, not retail traders.

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With this move, Ripple aims to enhance compliance and increase trust in the stablecoin space. BNY will store RLUSD's reserves and handle transaction flows. This means faster conversions, secure asset movement, and institutional-grade custody.

Stablecoins Are Growing Up

Ripple is targeting enterprise use cases. Think banks, payment companies, and financial firms need fast and reliable cross-border transfers. The stablecoin is regulated by New York’s Department of Financial Services. That's a high bar for compliance.

Ripple has also applied for a national banking charter. If approved, it could hold reserves directly with the Fed. The timing is key. The U.S. is softening its crypto stance. Congress is advancing stablecoin legislation. Big names are paying attention.

Amazon and Walmart are exploring stablecoin tech. So are Apple, Uber, and Airbnb. "Stablecoin Summer" is becoming a real trend.

BNY Mellon said it wants to lead in digital asset services. Ripple and BNY partners help reach that goal. This is more than a tech deal. It's about credibility. It shows Ripple wants to play by the rules and win trust.

Jack McDonald, SVP at Ripple, called RLUSD 

“A stablecoin built for enterprise use, not hype.” 

What the Ripple and BNY Partnership Means

By choosing BNY, Ripple is signaling a long-term vision. It's not about riding trends—it's about building financial infrastructure. This deal could push other stablecoin issuers to follow suit.

Thus, Ripple and BNY's partnership is key as market dynamics shift. Amidst growing adoption, regulatory alignment is no longer optional; it's the next battleground.