Ripple Partners with Banking Giant BNY Mellon to Safeguard $43 Trillion in RLUSD Reserves

Ripple just handed Wall Street's oldest vault keeper the keys to its stablecoin future. The blockchain firm named BNY Mellon—custodian of $43 trillion in assets—as primary guardian for its RLUSD reserves. Talk about institutional validation.

Why This Move Matters

This isn't just about cold storage. By aligning with a 240-year-old bank, Ripple's playing chess while crypto rivals play checkers. The message? RLUSD won't be another algorithmic stablecoin disaster waiting to happen.

The Fine Print

BNY Mellon gets first dibs on custody, but the deal's real magic lies in the optics. Nothing reassures skittish investors like a balance sheet older than the U.S. Constitution. Though let's be real—if 2008 taught us anything, even 'too big to fail' institutions sometimes... fail.

Bottom Line

Ripple's betting that old-money credibility beats DeFi purism. Given recent stablecoin implosions, they might just be right. Now if only traditional finance could move at blockchain speeds.

Ripple Partners With BNY Mellon for RLUSD Reserves Custody

In a press release on July 9, Ripple disclosed its new partnership with The Bank of New York Mellon Corporation to custody RLUSD reserves. The companies aim to boost digital asset adoption by institutions, connecting traditional finance and crypto.

Ripple to utilize BNY transaction banking services to support its operations and deliver solutions to its clients. BNY holds over $43 trillion in traditional assets under custody, as well as clears and settles more than $2 trillion in payments every day.

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,” said Jack McDonald, SVP of Stablecoins at Ripple.

Notably, Sandie O’Connor serves on the board of Ripple and is a board member of BNY Mellon, according to her LinkedIn profile.

Ripple’s Growing Partnerships

RLUSD stablecoin’s market cap has surpassed $500 million as it builds partnerships globally. Recently, it partnered with Swiss crypto bank AMINA for RLUSD custody and trading, as well as OpenPayd for RLUSD minting and burning.

Moreover, Ripple CEO Brad Garlinghouse revealed that the company has applied for a national bank license with the banking regulator OCC. Earlier, its subsidiary Standard Custody applied for the Federal Reserve’s master account.

Ripple Payments has near-global coverage with more than 90 payout markets representing more than 90% coverage of the daily FX markets, processing more than $70 billion in volume.

XRP price jumped after the BNY custody announcement to extend the 24-hour gain to nearly 4%, with the price currently trading at $2.38 at the time of writing. The 24-hour low and high are $2.28 and $2.38, respectively.

Also Read: Ripple’s RLUSD Stablecoin Surpasses $500M in Market Cap