Ripple has selected The Bank of New York Mellon (BNY Mellon) as the primary custodian for the reserves backing its stablecoin Ripple USD (RLUSD). This collaboration aims to enhance regulatory compliance and increase institutional trust in the product.
BNY Mellon as Primary Custodian
According to a company press release published in early July, BNY Mellon, the oldest bank in the United States with $50 trillion in assets under custody, will hold the reserves backing the RLUSD stablecoin, which launched in December 2024.
Efforts for Regulatory Compliance
The partnership with BNY Mellon is expected to enhance the transparency, compliance, and functionality of RLUSD. Emily Portney, BNY Mellon's global head of asset servicing, stated that this collaboration is a natural evolution of the bank's involvement in the crypto economy. "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," Portney remarked.
Ripple's Institutional Ambitions
Ripple is also actively pursuing ways to integrate crypto banking into the US financial system. On July 2, the firm filed an application with the US Office of the Comptroller of the Currency for a national banking license. Success in this application would change the oversight of RLUSD to the OCC, granting Ripple one of the few federal banking privileges among crypto companies.
Ripple's partnership with BNY Mellon and plans for a national banking license illustrate the growing interest in stablecoins and institutional investments in cryptocurrency. These moves could set new standards for transparency and trust in the crypto industry.
