Bank of New York Mellon to Custodian XRP Reserves for Ripple

Ripple, a digital asset infrastructure provider, has selected Bank of New York Mellon as the primary custodian for its Ripple USD (XRP-USD) reserves. Ripple USD is an enterprise-grade stablecoin issued under a New York Department of Financial Services (NYDFS) charter. This move is seen as a significant step in the adoption of stablecoins, which are digital assets pegged to the value of a traditional currency like the US dollar.

Ripple, a digital asset infrastructure provider, has announced the selection of Bank of New York Mellon (BNY) as the primary custodian for its Ripple USD (XRP-USD) reserves. This move underscores the growing acceptance and integration of stablecoins into the financial ecosystem.

Ripple USD, an enterprise-grade stablecoin, is issued under a New York Department of Financial Services (NYDFS) Trust Company Charter. The stablecoin is designed for high utility, particularly in cross-border payments, and aims to address the needs of institutional users rather than retail investors. The partnership with BNY, a global financial services company with a robust track record in digital asset custody, is seen as a significant step towards the adoption of stablecoins by financial institutions.

BNY's selection as the primary custodian of Ripple USD reserves is part of a broader strategy by Ripple to enhance the trust and reliability of its stablecoin offerings. The collaboration will leverage BNY's deep technology stack and expertise to provide end-to-end services, including custody, transaction banking, and integrated solutions. This move aligns with Ripple's goal of bridging the gap between traditional finance and the crypto ecosystem.

The selection of BNY as the custodian follows Ripple's recent application for a national bank charter from the Office of the Comptroller of the Currency (OCC) and a Federal Reserve master account. These moves signal Ripple's commitment to regulatory compliance and its strategic shift towards greater oversight and integration into the traditional financial system.

In addition to the custody agreement, Ripple has also partnered with London-based fintech firm OpenPayd to support the minting and burning of RLUSD, further increasing the adoption and utility of the stablecoin. This partnership aims to provide businesses with efficient access to dollar liquidity across borders, highlighting the enterprise-grade nature of Ripple USD.

The selection of BNY as the primary custodian for Ripple USD reserves is a testament to the growing acceptance and integration of stablecoins into the financial ecosystem. This move is likely to enhance the trust and reliability of Ripple USD among institutional users, further driving its adoption and integration into the global financial system.

References:
[1] https://seekingalpha.com/news/4466095-bank-of-new-york-mellon-selected-as-custodian-for-xrp-reserves
[2] https://coincodex.com/article/69751/ripple-applies-for-us-bank-charter-as-xrp-price-sees-boost-from-new-partnerships/
[3] https://www.morningstar.com/news/business-wire/20250709034309/ripple-selects-bny-to-custody-ripple-usd-reserves
[4] https://www.ainvest.com/news/hong-kong-introduces-stablecoin-licensing-system-enhance-digital-asset-supervision-2507/