Ripple Appoints BNY Mellon as Custodian for RLUSD Reserves

Ripple, a prominent enterprise blockchain company, has made a significant stride in solidifying its position within the institutional financial sector by appointing BNY Mellon as the primary custodian for the reserves backing its U.S. dollar-pegged stablecoin, RLUSD. This move underscores Ripple's commitment to enhancing transparency, liquidity, and regulatory compliance in the digital asset space.

On July 9, Ripple officially announced that BNY Mellon, the oldest bank in the United States and a global leader in asset servicing, would be responsible for safeguarding the RLUSD reserves. These reserves consist exclusively of cash and short-term U.S. Treasuries, held in segregated and auditable accounts. This institutional-grade custody framework is designed to provide robust transparency for RLUSD holders, ensure liquidity and seamless redemption processes, and instill confidence among regulators, enterprises, and investors.

Jack McDonald, Ripple’s SVP of stablecoins, highlighted BNY Mellon’s “demonstrable custody expertise and strong commitment to financial innovation” as key factors in the partnership. Emily Portney, BNY Mellon’s global head of asset servicing, expressed excitement about supporting the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash for conversions, working closely with Ripple to advance the future of the financial ecosystem.

This collaboration is more than just a technical custody arrangement; it signifies a significant vote of confidence from the institutional banking sector in the stability and regulatory compliance of Ripple’s offerings. RLUSD, regulated by the New York Department of Financial Services, is designed to provide a fast, low-fee, and transparent means of settlement for enterprises operating across borders.

Ripple’s decision to partner with BNY Mellon aligns with its recent application for a national banking charter in the U.S. and its pursuit of a Federal Reserve master account. Achieving these milestones would allow Ripple to connect RLUSD reserves directly to central banking infrastructure, further integrating its operations with the existing financial system and elevating its legitimacy among traditional institutions.

Behind the BNY Mellon partnership, Ripple has been steadily expanding its global network of institutional partners. Switzerland’s Amina Bank is the first globally licensed institution to offer RLUSD custody and trading, allowing both retail and institutional users access to the stablecoin for real-time cross-border settlements within the EU’s regulatory framework. In Asia, Ripple’s ongoing collaborations with SBI Holdings and Tranglo have led to surging On-Demand Liquidity (ODL) volumes, deepening Ripple’s reach in forex and payments. Ripple’s ecosystem has also attracted prominent enterprise users in regulated markets, reflecting growing trust in its compliance-first, scalable approach.

The partnership announcement has sparked renewed institutional and retail interest in Ripple and its digital assets. Market observers note that these advanced custody arrangements and the involvement of global banking leaders like BNY Mellon create a new standard for stablecoin security and transparency. They provide comfort to enterprises concerned about counterparty risk and liquidity in the digital asset space.

Ripple’s ambition extends beyond individual partnerships. The company is actively positioning RLUSD and the XRP Ledger as foundational layers for regulated finance, DeFi, and tokenization. The dual-chain nature of RLUSD—operating on both Ethereum and XRP Ledger—offers flexibility to suit different enterprise needs, and the company’s compliance initiatives are designed to future-proof its ecosystem against evolving regulations.

With its growing slate of institutional partners, regulatory wins, and marquee custody alliances, Ripple is rapidly closing the gap between the world of traditional and digital finance. As more global finance leaders join its network, Ripple is poised to shape the next chapter of the digital asset industry. This development marks a defining moment for Ripple, with BNY Mellon’s custodianship of RLUSD solidifying its reputation in the eyes of regulators, enterprises, and institutional investors worldwide.