Wall Street Legacy Meets Web3: Ripple Entrusts RLUSD Reserves to BNY Mellon
Ripple partners with BNY Mellon to custody RLUSD reserves as the stablecoin crosses $500M in market cap, signaling deeper institutional trust.
Ripple has partnered with the venerable Bank of New York Mellon to safeguard the reserves backing its stablecoin RLUSD, marking a pivotal step in bridging traditional finance with blockchain innovation. As RLUSD surpasses $500 million in circulation, the collaboration aims to reinforce market confidence with institutional-grade asset custody.
BNY Mellon, which oversees $52 trillion in assets, will now manage RLUSD's cash and U.S. Treasury holdings. The reserves will be maintained on a one-to-one basis with RLUSD tokens under regulations akin to those applied to money-market funds. This move grants RLUSD a compliance framework familiar to institutional investors and regulators alike.
Launched in December 2024 on Ethereum and the XRP Ledger, RLUSD has rapidly carved out a niche in the $260 billion global stablecoin sector. Its recent surge—a 62% increase in market cap during June alone, according to CoinGecko—is partly attributed to clearer U.S. regulatory guidance and a surge in institutional participation.
"We worked closely with Ripple to bring RLUSD to our full on-ramp ecosystem," said Harshit Gangwar, head of marketing at Transak. The crypto payments provider has integrated RLUSD across its global infrastructure, enabling instant purchases in 64 countries via platforms such as Apple Pay, Visa, and wire transfer. The rollout connects RLUSD to over 450 digital wallets, exchanges, and decentralized apps, including MetaMask and Coinbase Wallet.
This infrastructure expansion aims to deepen RLUSD's liquidity and broaden its retail and enterprise utility. Transak's off-ramp functionality, allowing users to convert RLUSD back into fiat, is expected to go live later this year.
Ripple is also pursuing a national trust bank license from the Office of the Comptroller of the Currency. If granted, it would position Ripple to issue RLUSD under direct federal oversight and accept customer deposits—a milestone in the convergence of fintech and traditional banking.
"We are supporting the growth of digital assets with an institutional-grade platform," noted Emily Portney, BNY Mellon's global head of asset servicing, reinforcing the bank's commitment to stablecoin infrastructure.
As RLUSD gains traction, Ripple's strategic partnerships are reshaping perceptions of stablecoins, not just as crypto utilities but as foundational components of the next-generation financial system.
