Ripple, backed heavily by venture firms and established as a business-to-business payments firm, released their new RLUSD stablecoin in December 2024. As the first U.S. dollar-pegged stablecoin that has focused on regulatory compliance and institutional credibility, it’s designed to help make crypto more attractive to institutions. The Bank of New York Mellon (BNY Mellon) was recently appointed as the main custodian for Ripple’s stablecoin reserves. This collaboration represents a big step forward in the fast-evolving, exciting world of digital finance.
As the treasury management solution provider and primary custodian, BNY Mellon will make rapid movement of NFT reserve assets and future cash to support conversions, easy. Joining with Trenchant to produce technoallieds is likely to improve operational efficiencies and further entrench Ripple’s dominant competitive position in the rapidly evolving global stablecoin industry. BNY Mellon has deep operating experience in asset servicing. Its deep roots embracing digital assets from the start will make regulatory compliance second nature.
Ripple was established 13 years ago by the same people behind the XRP token. It is of course aimed first and foremost at the banks, payment companies and financial institutions who require efficient cross-border payment solutions. Ripple operates the vast majority of its business operations outside the U.S. The past few years, it has moved in a direction to bring itself more in line with U.S. regulatory frameworks. In the past few weeks, Ripple has publicly sought a national banking charter and a Federal Reserve master account.
With a Federal Reserve master account, Ripple could hold these reserves directly with the central bank. This access would enable Ripple to use the central bank’s payment networks. This step is very important for enabling faster and more seamless transactions and for continuing to build Ripple’s credibility in the larger financial ecosystem.
As BNY’s global head of asset servicing, Emily Portney stated, this partnership really is a game changer.
“BNY is committed to delivering differentiated, end-to-end solutions, designed to meet the needs of institutions across the entire digital assets ecosystem.” – Emily Portney
Ripple and BNY Mellon’s partnership is set to catapult us into the future of our financial system. The wave of institutional interest in cryptocurrencies has only begun. In particular, initiatives such as RLUSD stand to demonstrate how to promote widespread adoption and utilization of digital assets.