BNY Mellon (BK) Stock Surges as Ripple Chooses Banking Giant for Stablecoin Custody—Wall Street Finally Wakes Up

Ripple just handed BNY Mellon the keys to the stablecoin kingdom—and investors are piling in. Here's why this 238-year-old bank is suddenly crypto's favorite babysitter.

The custody coup no one saw coming

While legacy banks were busy dismissing digital assets, BNY quietly built Fort Knox-grade crypto infrastructure. Now Ripple's locking its USD-backed stablecoin in their vaults—proving institutional custody isn't just for Coinbase anymore.

Wall Street's reluctant crypto embrace

BK shares jumped 3.2% on the news because nothing makes bankers believe in blockchain faster than seeing competitors' fee revenue. The old guard's playbook? Fight innovation for a decade—then charge premiums to manage what they couldn't stop.

One cynic's take: When the world's oldest bank starts holding your magic internet money, maybe it's time to short the 'disruption' narrative.

TLDR

• BNY Mellon to Custody Ripple’s RLUSD, Boosting Digital Asset Strategy
• Ripple Picks BNY Mellon for RLUSD Custody in Major Digital Finance Move
• BNY Mellon Expands Crypto Role with Ripple’s RLUSD Stablecoin Deal
• BNY Mellon Secures RLUSD Reserves, Strengthening Blockchain Services
• Ripple Taps BNY for RLUSD Support, Marking Leap in Digital Custody

The Bank of New York Mellon Corporation (NYSE: BK) ended trading on July 9 at $93.05, gaining $0.36 or 0.39%. The rise followed Ripple’s announcement selecting BNY as the primary reserve custodian for Ripple USD (RLUSD). Trading showed early volatility, but the stock stabilized in the afternoon and held steady after-hours.

The Bank of New York Mellon Corporation (BY)

The announcement marked a major development in BNY’s expansion into digital asset services. Ripple has chosen BNY to secure RLUSD reserves and support operational needs. This collaboration is expected to strengthen BNY’s position in the digital financial services space.

BNY has now added a leading enterprise-grade stablecoin to its custody portfolio. RLUSD is regulated under the New York Department of Financial Services (NYDFS) and designed for institutional use. It supports efficient, compliant, and scalable cross-border payments, aligning with BNY’s focus on large-scale financial infrastructure.

Ripple USD Adds Momentum to BNY’s Digital Strategy

Ripple USD is a stablecoin created to meet enterprise-level compliance and performance requirements. Unlike most stablecoins that focus on retail utility, RLUSD targets institutional financial operations. It leverages Ripple’s blockchain-based infrastructure to enable efficient transactions across global markets.

BNY will manage RLUSD’s reserve assets while also supporting liquidity and settlement functions. This partnership builds on BNY’s digital infrastructure capabilities and enhances its ability to serve tokenized financial instruments. RLUSD aims to reduce transaction costs and processing times for global financial operations.

Ripple has positioned RLUSD as a strategic product for regulated financial markets. With BNY handling custody and transaction support, the stablecoin may gain broader institutional adoption. This partnership is expected to lay groundwork for more integration between traditional finance and blockchain-based assets.

BNY Expands Digital Custody and Transaction Services

BNY has continued to grow its presence in the digital asset ecosystem with this new stablecoin mandate. The firm already serves major financial institutions globally and now adds stablecoin reserve custody to its offerings. This MOVE aligns with BNY’s long-term strategy of combining traditional finance with emerging asset classes.

Ripple’s selection of BNY strengthens the bank’s credibility in handling enterprise blockchain solutions. BNY’s infrastructure supports full transaction lifecycle services, which ensures secure and compliant asset management. The company also provides seamless integration with cash management and reserve operations.

This collaboration highlights BNY’s commitment to future-ready financial platforms. The firm oversees $53.1 trillion in assets under custody or administration, and $2 trillion in assets under management. With this agreement, BNY is expanding its role in the digital economy and increasing its relevance in institutional blockchain innovation.