Ripple Appoints BNY Mellon as RLUSD Custodian for Enhanced Security

Ripple has appointed BNY Mellon as the primary custodian for its U.S. dollar stablecoin, RLUSD. This move secures the token’s backing with cash and short-term U.S. Treasuries, enhancing transparency and operational confidence. The appointment includes custody and transaction banking services to support the stablecoin’s life cycle. BNY Mellon will manage RLUSD’s reserve assets on a 1:1 basis with the U.S. dollar, with the reserves consisting exclusively of cash and Treasury bills. These assets are held in segregated accounts and are audited on a third-party basis, providing institutional-level security and liquidity. This framework enhances the token’s redemption process and promotes confidence among users, operating with a higher standard of reserve protection.

Ripple launched RLUSD in December 2024 under a New York Department of Financial Services Trust Company Charter. The stablecoin has already received regulatory approval in Dubai and Switzerland, signaling Ripple’s success in gaining institutional trust worldwide. In Europe, Switzerland-based AMINA Bank became the first lender to offer custody and trading for RLUSD, indicating the stablecoin's growing ground in tightly regulated environments. RLUSD targets enterprise users seeking cost-effective and fast international transactions, supporting both Ethereum and XRP Ledger networks. With dual-chain functionality, RLUSD enables flexible cross-border operations, and its current market circulation has surpassed $500 million, confirming rising demand. Ripple built the stablecoin for compliance and institutional integration rather than retail usage, meeting operational and regulatory standards required by large financial institutions.

BNY Mellon began servicing digital assets in 2021 and now plays a central role in managing stablecoin reserves and liquidity. The bank will support conversions during the minting and redemption of RLUSD, adding transaction banking capabilities to streamline the token’s operational processes. Ripple’s selection of BNY reflects a shift toward deeper integration between traditional finance and blockchain. Ripple’s strategy to build institutional trust includes collaboration with global financial leaders. This partnership brings stability to RLUSD as market demand for regulated stablecoins increases. Ripple has also applied for a national banking license in the U.S. and a Federal Reserve master account. These applications may allow RLUSD reserves to be held directly with the central bank.