- BNY Mellon has agreed to provide custody services for up to $500 million worth of Ripple’s new RLUSD stablecoin
- The partnership marks a major institutional endorsement for RLUSD, which launched just weeks ago on the XRP Ledger and Ethereum networks
- Ripple has emphasized transparency and full-dollar backing for RLUSD, aiming to compete with leading stablecoins like USDC and USDT
BNY Mellon, one of the oldest and most established custodians in global finance, has partnered with Ripple to provide institutional-grade custody services for the RLUSD stablecoin. The arrangement, which covers up to $500 million in assets, represents a significant step forward in Ripple’s stablecoin strategy and positions RLUSD as a serious contender in the regulated digital dollar space. Daily attestation reports are expected to be released for transparency purposes in line with forthcoming rules in the U.S..
New Level of Credibility
The decision by BNY Mellon to support RLUSD with custody services brings a new level of credibility to Ripple’s stablecoin ambitions. The bank, which already provides similar services for other digital assets, is expanding its footprint in the stablecoin ecosystem amid growing institutional demand for tokenized cash.
Emily Portney, global head of asset servicing at BNY, said in a statement that the bank was pleased to have further dipped its toe in the digital asset space:
BNY is committed to delivering differentiated, end-to-end solutions, designed to meet the needs of institutions across the entire digital assets ecosystem. As primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions and are proud to be working closely with Ripple to continue propelling the future of the financial system.
Backed by cash and equivalents held in U.S.-based financial institution, Ripple launched RLUSD earlier this year to serve as a compliant, enterprise-grade stablecoin that can be used for payments, trading, and DeFi across multiple blockchains. Initially released on the XRP Ledger and Ethereum, RLUSD is expected to be interoperable with additional chains in the future.
Ripple Continues to Court Big Banks
With over $160 billion in stablecoins currently circulating, Ripple is aiming to carve out a regulated niche by appealing to banks, fintechs, and payment providers seeking alternatives to Tether and Circle. The addition of BNY Mellon as a custodian is likely to appeal to institutional clients who require secure, compliant infrastructure. Monica Long, President of Ripple, previously said the stablecoin would “bridge the gap between traditional finance and crypto-native applications” and offer “real-world utility” for enterprises.
In a landscape increasingly scrutinized by regulators, Ripple’s emphasis on regulatory clarity and transparency may prove to be a competitive edge, especially given that RLUSD reserves will be subject to regular third-party attestations. Ripple has already signaled that it is prepared to comply with emerging global stablecoin frameworks, and this partnership with BNY Mellon suggests a deliberate move toward building a trusted, regulated ecosystem for on-chain dollars.
