Ripple Partners with BNY Mellon to Boost RLUSD Stability and Institutional Adoption

Ripple has announced a strategic partnership with the Bank of New York Mellon Corporation (BNY), the world’s largest custodian bank and securities services company, to enhance the security and institutional adoption of its stablecoin, Ripple USD (RLUSD). BNY will serve as the primary custody provider for RLUSD reserves, a move that underscores Ripple’s commitment to bridging traditional finance with the crypto ecosystem.

The partnership is strategically timed as Ripple seeks to expand its regulatory framework and enhance the oversight of its stablecoin. Last week, Ripple applied for a national banking license from the US Office of the Comptroller of the Currency. This regulatory step is part of Ripple’s broader strategy to increase the credibility and trustworthiness of its crypto services, particularly RLUSD.

RLUSD, which operates on both the XRP Ledger and Ethereum, has seen remarkable growth since its launch. Within seven months, it surpassed $500 million in market capitalization, positioning itself among the top 20 largest dollar stablecoins by circulating supply. This rapid adoption highlights the growing demand for stablecoins that offer both stability and regulatory compliance.

The collaboration with BNY is expected to further bolster RLUSD’s standing in the market. BNY’s institutional-grade custody services will provide an additional layer of security and trust, making RLUSD more attractive to institutional investors. This partnership is a significant milestone in Ripple’s journey to integrate digital assets into the mainstream financial system, leveraging the expertise and reputation of a leading global bank.

Ripple’s move to secure a national banking license and partner with BNY reflects its proactive approach to regulatory compliance and institutional adoption. By aligning with a major custodian bank, Ripple is positioning itself as a reliable and trustworthy player in the crypto industry, capable of meeting the stringent requirements of institutional investors. This strategic partnership is likely to pave the way for further innovations and expansions in the digital asset space, as Ripple continues to push the boundaries of what is possible in the intersection of traditional finance and cryptocurrency.