Ripple Partners with Oldest U.S. Bank for RLUSD Custody

Ripple has announced that The Bank of New York Mellon (BNY) will be the primary custodian of the reserves backing the RLUSD stablecoin. In the announcement , Ripple emphasized that the move would drive institutional adoption of digital assets and bridge the worlds of traditional and decentralized finance.  Given BNY's reputation in the financial sector, its selection as the primary custodian of RLUSD reserves could boost institutional credibility for the stablecoin. As the oldest bank in the United States, BNY serves as a custodian for institutional and corporate assets. Launched in December 2024, RLUSD is backed by high-quality liquid assets, including cash equivalents, money market funds, and U.S. Treasuries. These reserves will be safely held in BNY, ensuring that the stablecoin maintains its dollar peg.  https://twitter.com/Ripple/status/1942901627234508829?t=7SvK-xbCGNPlHb7Vj_uxyA&s=19 Ripple and BNY Execs React  Jack McDonald, Ripple’s SVP of Stablecoins, stated that BNY was chosen as RLUSD’s ideal partner due to its unique blend of financial innovation, custody expertise, and forward‑thinking digital‑asset strategy.  BNY’s Global Head of Digital Services, Emily Portney, expressed enthusiasm in supporting the growth of the digital asset ecosystem. According to Portney, BNY achieves this vision by providing a differentiated platform that meets the institutional needs of the industry. “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.  Ripple Set to Leverage BNY Transaction Banking Services In addition to selecting BNY as the primary custodian of RLUSD’s reserves, Ripple confirmed that it will also leverage the bank’s transaction banking services to enhance its operations.  The development comes months after the U.S. Federal Reserve rolled back its anti-crypto policies, which had prohibited banks from engaging in crypto activities without authorization. In April, the Fed rescinded the 2022 and 2023 supervisory letters, allowing banks to engage with cryptocurrencies, including stablecoins, without seeking advance permission.  Meanwhile, Ripple has been making significant efforts to drive institutional adoption of RLUSD in recent times. Earlier this month, the company applied for a banking license with the Office of the Comptroller of the Currency (OCC).  The national bank charter, if granted, would subject RLUSD to full federal oversight. Since Ripple has already secured a banking license for the stablecoin in New York, RLUSD will operate with state and federal banking licenses if the OCC approves the company’s national bank charter request.  Notably, Ripple also applied for a Fed master account for the stablecoin through its custodian unit, Standard Custody.  RLUSD Now 8th Biggest Stablecoin  In the meantime, RLUSD’s market cap has crossed $500 million. RLUSD’s valuation, which stood at $469 million on July 3, has increased by 6.85% to $501.17 million in less than a week.  Following the surge, RLUSD flipped TrueUSD (TUSD) and became the eighth-largest stablecoin in the market. At the moment, TUSD is valued at $493.23 million.