Ripple has officially designated banking giant BNY Mellon as the custodian for reserves backing its RLUSD stablecoin. The partnership coincides with RLUSD exceeding $500 million in circulation, positioning the collaboration as a strategic move to enhance the stablecoin’s liquidity and regulatory compliance. Industry observers note BNY Mellon’s reputation strengthens institutional trust during a period of rapid stablecoin growth.
Ripple’s Senior Vice President of Stablecoins emphasized that custody by a globally recognized institution addresses core concerns around RLUSD’s transparency and adherence to financial regulations. This institutional endorsement is expected to drive broader market adoption at tier-1 exchanges and among enterprise users.
The announcement triggered positive market momentum for Ripple’s ecosystem, with XRP registering a 9.85% price appreciation and exceeding $141 billion in market capitalization. This upswing reflects growing investor confidence in RLUSD’s fortified position within the competitive stablecoin landscape.
Aligning with best practices established by major stablecoins like USDC, Ripple’s custody solution through BNY Mellon enhances RLUSD’s competitive standing through measurable improvements in reserve security. The integration marks a critical advancement toward establishing RLUSD as a trusted settlement asset for cross-border transactions.
This custody arrangement represents a foundational milestone for RLUSD’s infrastructure development, explicitly designed to accelerate institutional adoption through improved liquidity access and compliance frameworks. The collaboration signals Ripple’s commitment to embedding traditional finance safeguards within decentralized payment solutions.