Ripple, based in San Francisco, has partnered with BNY Mellon, one of the oldest and largest custody banks, to manage the reserves for its stablecoin, Ripple USD (RLUSD).
Ripple and BNY Mellon Partnership
Ripple has appointed BNY Mellon as the primary custodian for its stablecoin reserves. This strategic partnership aims to enhance institutional adoption of digital assets and bridge the gap between traditional finance and cryptocurrency. According to an announcement made on July 9, BNY Mellon will safeguard the stablecoin’s reserves, support its operations with transaction banking services, and manage the liquidity for the reserves collateralizing every RLUSD in circulation.
"BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure, making them the ideal partner for Ripple and RLUSD," stated Jack McDonald, who oversees Ripple’s stablecoin initiatives.
Ripple USD Market Cap Growth
Ripple USD, one of the few global stablecoins issued under a New York Department of Financial Services (NYDFS) Trust Company Charter, launched in late December 2024. Unlike other stablecoins primarily aimed at retail consumers, RLUSD was "purpose-built for enterprise utility," according to BNY Mellon. The market cap for RLUSD surpassed $500 million for the first time, showing a $200 million increase since the beginning of June, reflecting an impressive 61% surge.
Ripple's Potential in the US Financial System
Ripple has applied for a national banking charter with the U.S. Office of the Comptroller of the Currency. The firm also filed for a Federal Reserve master account, allowing it to hold RLUSD deposits directly with the central bank and further integrate into the U.S. financial system. At the time of writing, XRP was valued at $2.37, marking a 3.8% increase on the day.
The partnership between Ripple and BNY Mellon not only strengthens the position of RLUSD in the financial market but also opens up new opportunities for the institutional integration of cryptocurrencies into the traditional economy.
