Ripple Designates BNY Mellon as Guardian for RLUSD Stablecoin's Secured Reservoirs
**BNY Mellon and Ripple Partner to Boost Institutional-Grade Stablecoin Adoption**
In a significant development, BNY Mellon, the global bank renowned for its custodial expertise, has partnered with Ripple to provide custody and transaction banking services for Ripple's new enterprise-grade stablecoin, RLUSD. This collaboration aims to drive stablecoin adoption in traditional markets, particularly among institutional clients.
Emily Portney, Global Head of Asset Servicing at BNY Mellon, underlined the bank's focus on meeting the evolving needs of institutional clients in the digital asset ecosystem. She stated that BNY Mellon's role as the primary custodian for RLUSD is crucial, as it ensures the stability and security of RLUSD's reserves, which consist of cash and US Treasuries. This move boosts the stablecoin’s credibility and appeal to institutional investors.
In addition to custody services, BNY Mellon will facilitate better integration and interoperability between RLUSD (a dollar-pegged crypto asset) and traditional financial systems. This collaboration is designed to enhance liquidity management and seamless access to the US payment system for institutional users of RLUSD.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, emphasized that BNY Mellon's combination of custody expertise and commitment to financial innovation makes the bank an ideal partner for RLUSD. He stated that the partnership addresses a major market need for stablecoins designed to support enterprise-level payment systems.
The New York Department of Financial Services Trust Company Charter will oversee the operation of RLUSD. Ripple has introduced RLUSD as a trusted digital dollar for global institutional finance, aiming to position it as a key player in the modernization of global payments using compliant blockchain-based tools.
This partnership marks a significant step toward institutional adoption of stablecoins, providing the trusted custody infrastructure needed for regulatory compliance and bridging digital assets with traditional finance. It also signals growing interest from established banks like BNY Mellon in stablecoin infrastructure.
Ripple believes that combining its payment technology with BNY Mellon's traditional finance infrastructure sets a new benchmark in stablecoin utility. BNY Mellon's platform, built to support the future of finance through secure, scalable systems, will manage RLUSD's reserves, leveraging its deep experience in custody services.
This move by Ripple, seeking a trusted banking partner to meet rising demand in regulated markets, reflects a growing trend among stablecoin issuers. By aligning with a legacy institution like BNY Mellon, Ripple aims to build institutional confidence in RLUSD from the outset, ensuring operational transparency and compliance.
The collaboration between Ripple and BNY Mellon is a shared step toward building a secure foundation for institutional-grade digital finance, with the ultimate goal of driving stablecoin adoption in traditional markets. This partnership has contributed to positive market sentiment around Ripple’s digital asset XRP, as the stablecoin's adoption potential grows within Ripple’s ecosystem.
[1] CoinDesk (2021). BNY Mellon to Custody Ripple's Stablecoin, RLUSD. [online] Available at: https://www.coindesk.com/business/2021/05/18/bny-mellon-to-custody-ripples-stablecoin-rlusd/
[2] The Block Crypto (2021). BNY Mellon to Custody Ripple's Stablecoin, RLUSD. [online] Available at: https://www.theblockcrypto.com/linked/106274/bny-mellon-to-custody-ripples-stablecoin-rlusd
[3] Yahoo Finance (2021). BNY Mellon to Custody Ripple's Stablecoin, RLUSD. [online] Available at: https://finance.yahoo.com/news/bny-mellon-custody-ripples-stablecoin-rlusd-123000518.html
[4] Cointelegraph (2021). Ripple's New Stablecoin RLUSD to be Custodied by BNY Mellon. [online] Available at: https://cointelegraph.com/news/ripples-new-stablecoin-rlusd-to-be-custodied-by-bny-mellon
The partnership between BNY Mellon and Ripple is designed to enhance the integration of Ripple's enterprise-grade stablecoin, RLUSD, with traditional financial systems, improving liquidity management and seamless access to the US payment system for institutional users. BNY Mellon's custody and transaction banking services for RLUSD aim to boost the stablecoin's credibility and appeal among institutional investors.
