Crypto-Giant Ripple Distributes Millions of RLUSD Amid Boost from BNY Mellon Partnership in Push for Institutional Crypto Adoption
In a groundbreaking move, global financial services giant BNY Mellon has partnered with Ripple to custody the reserves of Ripple USD (RLUSD), a stablecoin designed to bridge the gap between traditional finance and cryptocurrency. This partnership is significant as it strengthens institutional trust and builds robust financial infrastructure for RLUSD.
As the primary reserve custodian for RLUSD, BNY Mellon, with $43 trillion in assets under custody, brings proven expertise in custody and transaction banking services to the table. This collaboration is a key confidence booster for institutional investors wary of crypto asset custody risks.
The partnership enhances institutional trust by offering a credible, regulated, and internationally recognized safeguard for RLUSD's 1:1 USD backing. This transparency and security have helped RLUSD earn Bluechip's highest A rating for transparency, regulatory compliance, and reserve management.
Moreover, RLUSD is designed as an enterprise-grade stablecoin aimed at improving the speed, cost, and efficiency of cross-border payments. BNY Mellon's involvement as custodian and Ripple's use of its transaction banking services help create a seamless, compliant, and scalable financial infrastructure attractive to large financial institutions.
RLUSD is issued under a New York Department of Financial Services (NYDFS) Trust Company Charter, ensuring strong regulatory oversight. BNY Mellon's role reinforces these provisions, addressing a critical market gap for compliant, institutional-grade digital assets.
The partnership could redefine how institutions approach digital asset custody and is seen as a foundational step toward scalable, compliant digital asset infrastructure. RLUSD's regulatory design, including the NYDFS trust license, sets it apart from other stablecoins created without legal protections or custodial support.
The growing demand for regulated and transparent stablecoins that can operate at enterprise scale is reflected in Ripple's decision to partner with BNY Mellon. RLUSD's global alignment suggests that it could become critical financial infrastructure for the world.
BNY Mellon enables full reconciliation and reporting features for RLUSD to satisfy institutional risk teams. Dubai's Virtual Assets Regulatory Authority (VARA) has given regulatory consent to RLUSD, hinting at potential expansion into the MENA region. AMINA Bank, based in Switzerland, has been onboarded as the first overseas financial institution to take custody and trading of RLUSD.
Ripple's move aims to bridge traditional finance and crypto through regulatory trust and custodial clarity. The partnership between Ripple and BNY Mellon showcases structural convergence of traditional financial institutions and native blockchain companies.
Since early July, Ripple has minted over 46 million RLUSD, with 16 million created in a single 24-hour period. RLUSD's total market capitalization has surpassed $500 million, placing it in a position to challenge legacy stablecoins like USDC and USDT. The partnership between Ripple and BNY Mellon is seen as a transformative step in bridging traditional trust frameworks with cryptocurrency technology, significantly increasing RLUSD’s credibility, compliance, and utility for institutional adoption and enterprise-scale payments.
[1] Coindesk (2021) BNY Mellon to Custody Ripple's Stablecoin, Boosting Institutional Trust. [online] Available at: https://www.coindesk.com/business/2021/07/06/bny-mellon-to-custody-ripple-stablecoin-boosting-institutional-trust/
[2] Cointelegraph (2021) Ripple's USD-pegged stablecoin RippleX gets A rating from Bluechip ratings. [online] Available at: https://cointelegraph.com/news/ripple-s-usd-pegged-stablecoin-ripplex-gets-a-rating-from-bluechip-ratings
[3] Finextra (2021) Ripple and BNY Mellon partner on enterprise-grade digital asset custody. [online] Available at: https://www.finextra.com/pressarticle/94918/ripple-and-bny-mellon-partner-on-enterprise-grade-digital-asset-custody
[4] CoinDesk (2021) Ripple's Stablecoin RippleX Gets Bluechip A Rating. [online] Available at: https://www.coindesk.com/business/2021/07/13/ripple-stablecoin-ripplex-gets-bluechip-a-rating/
[5] Cointelegraph (2021) Ripple's USD-pegged stablecoin RippleX gets A rating from Bluechip ratings. [online] Available at: https://cointelegraph.com/news/ripple-s-usd-pegged-stablecoin-ripplex-gets-a-rating-from-bluechip-ratings
- BNY Mellon, with its proven expertise in custody and transaction banking services, partners with Ripple to custody the reserves of Ripple USD (RLUSD), a stablecoin designed to bridge the gap between traditional finance and cryptocurrency.
- RLUSD, issued under a New York Department of Financial Services (NYDFS) Trust Company Charter, has earned Bluechip's highest A rating for transparency, regulatory compliance, and reserve management, reflecting the growing demand for regulated and transparent stablecoins.
- The partnership between Ripple and BNY Mellon is a key confidence booster for institutional investors wary of crypto asset custody risks, as it enhances institutional trust by offering a credible, regulated, and internationally recognized safeguard for RLUSD's 1:1 USD backing.
- Ripple's usage of BNY Mellon's transaction banking services, along with BNY Mellon's involvement as custodian, helps create a seamless, compliant, and scalable financial infrastructure attractive to large financial institutions, with RLUSD aimed at improving the speed, cost, and efficiency of cross-border payments.
- Since early July, Ripple has minted over 46 million RLUSD, with 16 million created in a single 24-hour period, and the total market capitalization has surpassed $500 million, positioning RLUSD to challenge legacy stablecoins like USDC and USDT, showing the transformative potential of bridging traditional trust frameworks with cryptocurrency technology.
