Ripple Taps BNY Mellon for Stablecoin Custody

Institutional-Grade Stablecoin Solution Launches

Ripple has announced Bank of New York Mellon (BNY Mellon) will serve as the primary custodian for the reserves backing its new U.S. dollar-pegged stablecoin, Ripple USD (RLUSD). This strategic partnership marks a significant step in Ripple’s push to establish RLUSD as an institutional-grade digital asset for enterprise use cases, particularly in cross-border payments.

Key Features of the RLUSD Stablecoin

The newly launched stablecoin offers several competitive advantages:

Regulatory Compliance

  • Issued under New York Department of Financial Services (NYDFS) charter

  • Fully regulated and transparent operations

  • Designed to meet institutional requirements

Technical Capabilities
✔ 1:1 USD backing with BNY Mellon custody
✔ Built for high-volume payment flows
✔ Enterprise-grade security and reliability
✔ Seamless integration with Ripple’s payment network

“RLUSD addresses a critical gap in the market for enterprise-focused stablecoins,” said Jack McDonald, SVP of Stablecoins at Ripple.

Why BNY Mellon Matters

The custody partnership provides crucial benefits:

Institutional Trust

  • BNY Mellon’s 238-year reputation in asset custody

  • Demonstrated expertise in digital asset safeguarding

  • Established relationships with global financial institutions

Operational Support
→ Transaction banking infrastructure
→ Risk management frameworks
→ Compliance monitoring systems
→ Scalability for growing demand

Market Positioning and Competition

RLUSD enters a crowded but growing market:

Competitive Landscape

  • Challenges established players like USDC and Paxos

  • Differentiates through enterprise payment focus

  • Targets financial institutions rather than retail

Market Opportunities
✓ $150B+ stablecoin market capitalization
✓ Growing institutional adoption
✓ Demand for regulated alternatives
✓ Cross-border payment innovation

Strategic Implications

This launch signals:

  1. Ripple’s evolution beyond XRP-focused solutions

  2. Mainstream finance adoption of blockchain technology

  3. Increased competition in institutional stablecoins

  4. Regulatory maturation of digital assets

Future Outlook
Industry analysts suggest RLUSD could:
→ Capture 5-10% of enterprise stablecoin volume by 2025
→ Drive adoption in Ripple’s payment network
→ Pressure competitors to enhance offerings

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