Ripple has announced the selection of Bank of New York Mellon (BNY Mellon) as the primary custodian for the reserves backing its enterprise-grade stablecoin, Ripple USD (RLUSD).
BNY Mellon is the oldest bank in the United States and a global leader in asset management and asset servicing. This bank will oversee the cash reserves that underpin RLUSD. The bank’s deep expertise in digital asset infrastructure and its robust technology stack were key factors in Ripple’s decision.
As the stablecoin market surpasses a $250 billion market capitalization, the need for secure, transparent, and scalable custody solutions has become paramount for both issuers and institutional clients.
Enterprise Value Of RLUSD
RLUSD launched under a Trust Company Charter issued by the New York Department of Financial Services (NYDFS). It is fully backed by a separate reserve of cash and cash equivalents. It is also linked 1:1 to the US dollar.
The RLUSD stablecoin is well-suited for institutional use, particularly in cross-border transactions where speed, efficiency, and regulatory clarity are paramount, unlike many consumer-focused stablecoins.
The responsibilities of BNY Mellon will go beyond basic custody. The bank will strengthen RLUSD’s operational foundation by enabling the smooth transfer of cash and reserve assets to support conversions and settlements.
The timing of the transfer coincides with RLUSD’s explosive growth. With the majority of activity now taking place on the Ethereum network and a growing presence on Ripple’s own XRP Ledger, the stablecoin’s circulating supply has topped $500 million. Regulatory clearances in the United States and Dubai have further supported the growth of RLUSD. This indicates a growing demand for enterprise-grade, compliant digital assets worldwide.
A larger trend is also evident in Ripple’s choice to entrust BNY Mellon with RLUSD’s reserves. Big Wall Street banks are increasingly serving as the foundation of stablecoin infrastructure. In addition to being a major custodian for other well-known stablecoins, such as Circle’s USDC, BNY Mellon is solidifying its position as the industry’s preferred banking partner.
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