TL;DR
- Ripple appointed BNY Mellon as the custodian of the cash and Treasury reserves backing its RLUSD stablecoin, which has already surpassed $500 million.
- The company is seeking a federal banking license to issue RLUSD under national regulation, as major corporations consider entering the stablecoin market.
- BNY Mellon, with $52 trillion in assets under custody, will manage RLUSD’s liquidity and provide transaction banking services to support Ripple’s operations.
Ripple selected BNY Mellon to safeguard the cash and Treasury bill reserves backing its RLUSD stablecoin.
This decision aims to strengthen the token’s operational infrastructure, now exceeding $500 million in circulation just seven months after launch. With this move, RLUSD adds a traditional banking partner with experience in digital assets, a necessary step as dollar-backed stablecoins gain traction among financial institutions and large companies.
BNY Mellon, managing $52 trillion in assets under custody, will be responsible for safeguarding and managing the liquidity of the reserves guaranteeing RLUSD’s 1-to-1 convertibility with U.S. dollars. The bank began offering services to institutional crypto clients in 2022, after launching a dedicated digital assets unit the previous year. Its experience allows it to operate under the same standards governing money market funds.
Ripple Applied for a National Trust Bank Charter
RLUSD launched in December 2024 on both the XRP Ledger and Ethereum, with the goal of offering a stablecoin tailored for enterprise financial operations. The token is licensed by the New York Department of Financial Services (NYDFS), setting it apart from other stablecoins designed for retail use. Its framework includes backing with high-quality liquid assets, third-party audits, and clear redemption rights for holders.
Ripple has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC), a license that would authorize it to issue RLUSD under federal banking regulations and manage customer deposits directly. This move seeks to consolidate Ripple’s position in the institutional market, a timely decision as multinationals like Amazon and Walmart, along with major banks, are actively exploring the stablecoin business.
In addition to safeguarding reserves, BNY Mellon will provide transaction banking services to support Ripple’s day-to-day operations. The partnership merges traditional banking infrastructure with enterprise-grade crypto solutions. Regulated stablecoins, offering immediate liquidity and secure custody, are becoming a key tool for international payments and corporate liquidity management.
