DTCC Wins SEC Approval as Ripple Selects BNY Mellon for RLUSD Custody — Institutional Finance Is Quietly Converging

A major shift is unfolding beneath the surface of global finance. In a move that strengthens the backbone of U.S. capital markets, the Depository Trust & Clearing Corporation (DTCC)
has received approval from the U.S. Securities and Exchange Commission (SEC)
to expand its cleared triparty repo services. At the same time, Ripple
confirmed it has selected BNY Mellon as the primary custodian for Ripple USD (RLUSD) stablecoin reserves.

While these announcements emerged from different corners of the financial system, they are deeply connected. Together, they highlight how traditional market infrastructure and digital asset frameworks are merging around trusted custody, collateral management, and regulatory compliance.

SEC Approval Expands DTCC’s Role in Triparty Repo Markets

Triparty repurchase agreements sit at the heart of institutional liquidity. They allow banks and broker-dealers to exchange cash for high-quality collateral under standardized and highly regulated conditions. With the SEC’s approval, DTCC’s Fixed Income Clearing Corporation (FICC) can now offer cleared triparty repo services within its existing Agent Clearing Service (ACS).

This expansion enables support for both “done-with” and “done-away” cleared triparty repo transactions. In practical terms, it reduces counterparty risk, improves transparency, and strengthens the resilience of short-term funding markets that underpin the broader financial system.

Why BNY Mellon’s Collateral Infrastructure Matters

A critical element of DTCC’s approval is its reliance on BNY Mellon’s collateral infrastructure. BNY already operates one of the most sophisticated custody and collateral management platforms in the world, overseeing tens of trillions of dollars in assets.

THIS JUST IN: DTCC has received approval from the @SECGov to offer the ACS Triparty Service within FICC’s existing Agent Clearing Service (ACS). The service leverages @BNYglobal Collateral infrastructure to support both “done-with” and “done-away” cleared triparty repo trades.… pic.twitter.com/88xcwPmHRm

— DTCC (@The_DTCC) January 7, 2026

By embedding BNY’s infrastructure directly into DTCC’s cleared repo framework, the market is reinforcing a simple truth: when systemic importance is at stake, institutions default to proven custodians. This is not experimental technology—it is core financial plumbing being reinforced and expanded.

Ripple Selects BNY Mellon to Custody RLUSD Reserves

Just days earlier, Ripple announced that BNY Mellon will serve as the primary reserve custodian for Ripple USD (RLUSD), a stablecoin designed specifically for enterprise and institutional use cases. Issued under a New York Department of Financial Services Trust Company Charter, RLUSD emphasizes regulatory compliance, transparency, and operational reliability.

Unlike retail-oriented stablecoins, RLUSD is built for real-world financial workflows, including cross-border payments, liquidity management, and settlement between institutions. Custody is not a side detail—it is foundational to RLUSD’s credibility.

BNY Mellon’s Expanding Role in Digital Asset Infrastructure

As custodian, BNY Mellon will safeguard RLUSD reserves while also providing transaction banking services that support conversions between cash and digital assets. This mirrors the same responsibilities BNY fulfills across traditional markets, where trust, auditability, and regulatory alignment are non-negotiable.

By extending these services into stablecoins, BNY is positioning itself as a bridge between traditional finance and blockchain-based value systems. The strategy is evolutionary, not disruptive, and that distinction matters to regulators and institutions alike.

How DTCC and Ripple’s Decisions Intersect

At first glance, DTCC’s cleared repo expansion and Ripple’s custody decision may appear unrelated. One is firmly rooted in traditional finance, while the other operates in the digital asset ecosystem. The connection becomes clear when viewed through the lens of institutional trust.

Both initiatives rely on the same core pillars: regulated custody, high-quality collateral, and infrastructure that regulators already understand. In both cases, BNY Mellon serves as the trusted intermediary ensuring assets—whether Treasuries or stablecoin reserves—are secure, auditable, and liquid.

Market Reaction from Inside the System

“Nothing about this feels experimental,” said Mark Ellis, a senior collateral operations manager at a primary dealer active in triparty repo markets. “This is established infrastructure being extended to support where markets are going, not a leap into the unknown.”

Expert Insight on Institutional Adoption

“These announcements show how digital assets are being absorbed into the existing financial system,” explained Dr. Laura Chen, a former central-bank payments advisor and digital finance researcher. “Stablecoins only scale when they plug into trusted custody and collateral frameworks, and that’s exactly what Ripple is doing with BNY.”

What This Means for Banks, Corporates, and Regulators

For banks and asset managers, the implications are significant. Cleared triparty repo services lower funding risk, while regulated stablecoins like RLUSD offer a compliant path to blockchain-based settlement. Together, they reduce friction without introducing new regulatory uncertainty.

For regulators, these developments reinforce a preferred model of innovation—one that builds on existing oversight structures instead of bypassing them. That alignment may ultimately accelerate adoption rather than slow it.

The Bigger Picture: Financial Infrastructure, Not Hype

Taken together, DTCC’s SEC-approved expansion and Ripple’s partnership with BNY Mellon point to a future defined by convergence, not confrontation. Blockchain technology is not replacing traditional finance. It is being integrated into it, one infrastructure layer at a time.

As tokenized assets, stablecoins, and cleared markets continue to grow, custody and collateral will remain the gatekeepers of scale. For now, BNY Mellon sits squarely at that intersection—quietly shaping how the next generation of financial markets will function.