tl;dr
Ripple has appointed BNY Mellon as the primary custodian for the reserves backing its Ripple USD (RLUSD) stablecoin to enhance regulatory compliance and institutional trust. BNY Mellon, with $50 trillion in assets under custody, will manage reserve assets and cash conversions to improve RLUSD’s tran...
Ripple has appointed The Bank of New York Mellon (BNY Mellon) as the primary custodian for the reserves underpinning its Ripple USD (RLUSD) stablecoin. BNY Mellon, the oldest bank in the United States, holds $50 trillion in assets under custody. This partnership aims to strengthen regulatory compliance and institutional confidence in RLUSD, which debuted in December 2024 amidst a surge of pro-crypto regulatory developments in Washington.
BNY Mellon’s global head of asset servicing, Emily Portney, emphasized that the collaboration is a natural progression of the bank’s growing crypto involvement since launching a dedicated crypto unit in 2021. The bank will facilitate the smooth management of reserve assets and cash conversions, enhancing RLUSD’s transparency and functionality. Ripple, a San Francisco-based digital payments firm famous for its XRP token, is also pursuing deeper integration within the US financial system through applications for a national banking license and a Federal Reserve master account.
Currently regulated at the state level by the New York Department of Financial Services, RLUSD could come under federal oversight by the Office of the Comptroller of the Currency (OCC) pending Ripple’s banking license approval. This shift would mark Ripple as one of the few crypto firms with federal banking authority, setting a higher compliance standard for stablecoins. Jack McDonald, Ripple’s senior vice president of stablecoins, highlighted that dual regulatory supervision would elevate transparency and trust in the stablecoin market.
The move occurs amid growing institutional and corporate interest in stablecoins. Major companies like Amazon, Walmart, Uber, Airbnb, and Apple are reportedly exploring stablecoin issuance for payment use. Recently, the US Congress advanced the Genius Act, legislation that mandates stablecoin issuers obtain a national bank license and maintain strict 1:1 asset backing with fiat and Treasury securities. Anchorage Digital currently holds the only federally chartered crypto bank license, with Circle, the USDC issuer, also applying.
Ripple’s RLUSD has reached a market cap of about $469 million, signaling growing adoption. The company’s banking aspirations have buoyed interest in its XRP token, which saw a 4% price increase following Ripple’s banking license announcement, breaking a key resistance level and hinting at further market momentum.