BNY Mellon Partners with Ripple for Stablecoin Reserves
In an announcement made on Wednesday, BNY Mellon stated that it will be the primary custodian of Ripple’s USD-backed Stablecoin reserves. This collaboration aims to enhance regulatory compliance with Ripple USD (RLUSD), particularly to boost institutional confidence in both the company and the burgeoning Stablecoin sector.
BNY Mellon, recognized as the oldest bank in the United States, primarily caters to institutions and businesses. This move reflects a growing interest from traditional financial institutions in Stablecoins, especially during a time dubbed the “summer of Stablecoin.” This period has seen a shift in crypto policy following the Trump administration’s efforts against restrictive measures introduced during Biden’s term, along with Congress passing relevant legislation. There are reports about Amazon and Walmart exploring the potential for their own Stablecoins, while companies like Uber, Apple, and Airbnb have also shown interest.
Emily Portney, Global Asset Manager at BNY Mellon, expressed enthusiasm in a statement: “BNY is committed to providing differentiated, end-to-end solutions designed to meet the needs of institutions across the digital asset ecosystem. As a leading custodian, we are excited to support the growth and adoption of RLUSD by promoting seamless movements of reserve assets and cash and supporting conversions. We are proud to work closely with Ripple to continue the future of our financial system.”
Stablecoins are cryptocurrencies pegged to a stable asset, typically the US dollar, aimed at bringing the stability of traditional currency to blockchain networks, which are often lauded for their efficiency in processing remittances.
Recently, Ripple has also sought a US National Bank Charter and a Master Account with the Federal Reserve System. Securing these would enable the company to hold its reserves at the central bank directly and access various payment systems.
Ripple, founded by the creator of the XRP token, operates as a payment solution for businesses, especially facilitating cross-border transactions. Since launching its RLUSD Stablecoin in December 2024, the company has focused on supporting banks and financial institutions, many of which are located outside the United States.
While BNY has been observing the crypto landscape for years, it officially entered the industry in 2021 by establishing a digital asset unit dedicated to Bitcoin and other cryptocurrencies.
