Ripple on Wednesday named Bank of New York Mellon as the primary custodian for the U.S. dollar reserves backing Ripple USD (RLUSD)
Ripple on Wednesday named Bank of New York Mellon as the primary custodian for the U.S. dollar reserves backing Ripple USD (RLUSD), an enterprise-focused stablecoin launched in December 2024. The 240-year-old bank will safeguard the reserves, which are held 1-for-1 in cash and short-term Treasuries, and provide transaction-banking services that support minting and redemption of the token.
BNY Mellon said the mandate underscores its goal of delivering “end-to-end solutions” across the digital-assets ecosystem, while Ripple called the bank’s custody expertise essential to meeting the regulatory and transparency standards demanded by institutional clients. RLUSD is one of the few global stablecoins issued under a New York Department of Financial Services trust charter and is designed to speed up cross-border payments for banks and corporates.
The tie-up adds to a wave of traditional-finance involvement in stablecoins as Congress drafts sector-specific legislation and large retailers consider issuing their own tokens. Ripple has separately applied for a U.S. national banking charter and a Federal Reserve master account, moves that would allow it to hold reserves directly with the central bank and deepen its integration with the conventional financial system.
This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz.
