Ripple has named BNY Mellon as the primary custodian for the reserves backing Ripple USD (RLUSD), its enterprise-focused stablecoin.
The partnership reflects a joint effort to build compliant digital asset infrastructure suited for financial institutions.
RLUSD is issued under a New York Department of Financial Services Trust Company Charter and is designed to improve the speed, cost and efficiency of cross-border payments.
It is positioned as a stablecoin developed for institutional use, rather than for retail transactions.
BNY Mellon will manage the reserves and support RLUSD’s operations through its transaction banking services.
The bank brings prior experience in supporting stablecoin infrastructure and is working toward greater interoperability between digital and traditional financial assets.
“Ripple USD addresses a critical gap in the market as a stablecoin developed for enterprise-grade financial use cases, designed to meet the rigorous standards of leading financial institutions.
BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure, making them the ideal partner for Ripple and RLUSD.”
said Jack McDonald, SVP of Stablecoins at Ripple.
“As a leading financial platforms company, BNY is committed to delivering differentiated, end-to-end solutions, designed to meet the needs of institutions across the entire digital assets ecosystem.
As primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions and are proud to be working closely with Ripple to continue propelling the future of the financial system.”
said Emily Portney, Global Head of Asset Servicing at BNY.
Featured image: Edited by Fintech News Singapore, based on image by komodo via Freepik
