The Bank of New York Mellon Corporation (BNY Mellon) continues to serve as a global partner for various cryptocurrency-related initiatives. The latest step sees the bank collaborating with Ripple for the custody of the new stablecoin RLUSD.
Collaboration Between BNY Mellon and Ripple
According to a recent press release, BNY Mellon will serve as the custodian for Ripple's stablecoin RLUSD. Both parties emphasized their joint commitment to advancing digital assets at an institutional level, aiming to bridge the gap between traditional finance and cryptocurrency.
Stablecoin RLUSD
RLUSD was introduced late last year after receiving approval from the New York Department of Financial Services. This stablecoin is pegged to the US dollar at a 1:1 ratio and is backed by 'high-quality liquid assets.' Unlike other stablecoins, RLUSD is designed for enterprise use, particularly to improve the speed, cost, and efficiency of cross-border payments.
BNY Mellon's Role in the Crypto Industry
BNY Mellon has long shown interest in the cryptocurrency market, being one of the first US banks to engage in this ecosystem. Since the onset of the COVID-19 pandemic, the bank has launched several cryptocurrency-related products and provides custody services to various digital asset firms.
The collaboration between BNY Mellon and Ripple highlights the growing interest in digital assets from traditional financial institutions and opens new opportunities for institutional engagement in the crypto economy.
