Ripple has announced a new strategic partnership with BNY aimed at bolstering trust in its stablecoin RLUSD among institutional users.
Partnership with BNY
On July 9, Ripple announced that BNY, a major global financial institution, will manage the cash reserves of RLUSD. Under this agreement, BNY will provide integrated banking solutions that will assist Ripple in its operational functions.
Ripple's Strategy and RLUSD
Ripple's stablecoin strategy is focused on meeting the demands of enterprise clients for reliable tools for cross-border transactions. RLUSD is pegged 1:1 to the US dollar and is backed by segregated reserves of cash and cash equivalents. The design of RLUSD prioritizes speed, cost efficiency, and regulatory compliance.
Significance of RLUSD in the Market
The adoption of RLUSD is steadily increasing. The current circulating supply has surpassed $501 million, with $435 million on Ethereum and $65 million on the XRP Ledger. Approved by New York regulators in late 2024 and recently greenlit by the Dubai Financial Services Authority, RLUSD is gaining traction in key jurisdictions.
The partnership with BNY illustrates Ripple's strategic movement towards establishing RLUSD as a trusted tool for global enterprise transactions.
