XRP: Ripple Taps BNY Mellon to Custody RLUSD Reserves

XRP and Ripple have taken a significant leap in boosting credibility and adoption, as Ripple has officially named Bank of New York Mellon (BNY Mellon) as the primary custodian for its RLUSD stablecoin reserves. This partnership is set to enhance institutional trust in digital assets while solidifying the bridge between traditional finance and blockchain-based solutions.

According to Ripple’s announcement, the decision to work with BNY Mellon underscores their commitment to robust financial infrastructure and forward-thinking integration of the decentralized economy. BNY Mellon, the oldest bank in the United States, plays a pivotal role in global finance by offering custodial services to institutional and corporate clients handling trillions in assets. Its inclusion validates RLUSD’s stability and Ripple’s mission to merge the strengths of legacy banking with blockchain innovation.

Launched in December 2024, RLUSD is Ripple’s foray into the world of stablecoins. Backed by high-quality liquid assets such as cash equivalents, U.S. Treasuries, and money market funds, RLUSD maintains a strict 1:1 dollar peg. With BNY Mellon safeguarding these assets, the stablecoin gains a new layer of transparency and trustworthiness—key pillars for any institution seeking to delve into the digital finance space.

Ripple’s SVP of Stablecoins, Jack McDonald, emphasized BNY Mellon’s alignment with Ripple’s strategic goals. He praised the bank for blending innovation with a strong track record in financial custody and a modernized approach to digital asset integration. This combination, McDonald noted, made BNY the ideal partner to back RLUSD’s custodial infrastructure.

Emily Portney, BNY Mellon’s Global Head of Digital Services, also expressed optimism about the alliance. She stated that the institution is committed to building reliable platforms tailored to institutional clients engaging in digital markets. “We intend to provide secure, innovative, and streamlined solutions that empower financial ecosystems worldwide. BNY is proud to partner with Ripple as we propel the future of the financial system and digital asset adoption at institutional scale,” Portney remarked.

Beyond custody, Ripple plans to incorporate BNY Mellon’s advanced transaction banking services into its operations. This will likely enhance the efficiency and reach of the RLUSD ecosystem, contributing to broader usability and integration within the banking and payments networks.

This strategic move follows recent changes in U.S. federal policy. In April, the Federal Reserve rescinded restrictive supervisory letters from 2022 and 2023, clearing the path for banks to interact with cryptocurrencies such as stablecoins. This regulatory shift provided Ripple the opportunity to scale its stablecoin ambitions legally and safely.

The momentum doesn’t stop there. Earlier this July, Ripple applied for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC). If approved, RLUSD would come under full federal oversight. The company has already secured a New York banking license, and a national charter would allow RLUSD to operate across jurisdictions with state and federal compliance in place. Additionally, Ripple submitted a request for a Federal Reserve master account through its custody partner, Standard Custody.

Ripple’s calculated strategy appears to be paying off. As of early July 2025, RLUSD has surged past the $500 million mark in market capitalization. From a valuation of $469 million on July 3, RLUSD climbed by 6.85% to reach $501.17 million within a week. This leap allowed RLUSD to overtake TrueUSD (TUSD), which holds a market value of $493.23 million, officially ranking RLUSD as the eighth-largest stablecoin in the global market.

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The upward trend of RLUSD reflects growing institutional confidence and user adoption—key indicators of health in the stablecoin market. Backed by XRP and Ripple’s legacy, bolstered by BNY Mellon’s custody solutions, and aligned with updated federal guidance, RLUSD seems well-positioned to gain further traction in 2025 and beyond.