Ripple has partnered with BNY Mellon, a global financial institution managing over $2 trillion in assets, to serve as the primary custodian for RLUSD reserves. This development follows RLUSD surpassing the $500 million mark in circulating supply, just seven months after its launch.
Ripple’s RLUSD Gains Institutional Backing
Ripple has announced that BNY Mellon, the oldest bank in the United States, will be the main custodian for RLUSD reserves. This choice gives RLUSD a big boost in credibility. RLUSD is designed for important business uses like cross-border payments and real-time treasury management.
Unlike stablecoins primarily aimed at retail users, RLUSD is purpose-built for regulated financial environments. It’s backed 1:1 by high-quality liquid assets, namely, cash, cash equivalents, and short-term U.S. treasuries.
RLUSD is also one of the few global stablecoins issued under the strict regulatory framework of a New York Department of Financial Services (NYDFS) Trust Company Charter.
Notably, Ripple and BNY Mellon are in partnership to blend traditional finance with blockchain technology. As part of the partnership, Ripple will also leverage BNY Mellon’s transaction banking services to support RLUSD’s operational needs.
Ripple’s Senior Vice President of Stablecoins, Jack McDonald, said the partnership with BNY Mellon fills an important need for stablecoins that meet high standards set by top financial institutions. In addition, Emily Portney, BNY Mellon’s Global Head of Asset Servicing, supported this view, emphasizing the company’s dedication to developing the next stage of digital asset infrastructure.
Major companies like Amazon, Walmart, and Uber are now looking into stablecoins as part of a trend called “stablecoin summer.” This shift is happening as crypto regulations become more relaxed under the Trump administration.
RLUSD Hits $500M Market Cap in 7 Months of Launch
RLUSD launched in December 2024 and grew quickly, reaching a circulating supply of $500 million in just seven months, according to DefiLlama. You can use this stablecoin on both the XRP Ledger and Ethereum networks. It is now among the top 20 dollar-pegged stablecoins worldwide, with about $26 million in daily trading volume.
Furthermore, Ripple is seeing more investors use its services as it seeks a national trust bank charter from the U.S. Office of the Comptroller of the Currency (OCC). If Ripple gets this license, it can issue RLUSD and hold customer deposits, similar to what federally chartered banks do. This goal is also shared by Circle, another stablecoin issuer. Given these strategic moves, many in the crypto community anticipate a sharp rise in RLUSD’s market dominance soon.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
Source: https://coingape.com/ripple-taps-2-trillion-aum-bny-mellon-for-custody-of-rlusd-reserves/