Ripple Partners with BNY Mellon to Custody RLUSD Stablecoin Reserves
Ripple has announced a significant collaboration with BNY Mellon, enlisting the global banking giant for the custody of its RLUSD stablecoin reserves. This partnership marks another pivotal move for the San Francisco-based company as it navigates the competitive landscape of digital assets.
According to a statement released on 9 July, Ripple is set to team up with The Bank of New York Mellon Corporation (BNY) to manage the "primary custody of Ripple USD (RLUSD) reserves." The aim of this collaboration is to facilitate the broader adoption of digital assets in institutional finance, essentially bridging traditional banking and the cryptocurrency world.
In the joint announcement, Ripple highlighted their commitment to developing digital asset infrastructure that supports institutional use. "Ripple and BNY are jointly committed to paving the way for digital asset adoption at institutional scale," the company noted.
RLUSD’s Market Position and Growth Potential
Currently, RLUSD stands as the 16th largest stablecoin, boasting a market capitalisation of US$501 million (approximately AU$765.8 million) and a daily trading volume of US$51.5 million (AU$87.7 million). While these figures are significantly lower than those of leading stablecoins such as Tether (USDT), which has a market cap of approximately US$158.8 billion (AU$242.7 billion), RLUSD has been experiencing rapid growth since its inception in late 2024.
Ripple’s strategy positions RLUSD primarily for institutional clients, contrasting with peers like Tether, which are more popular among retail users. BNY Mellon will leverage its extensive experience in digital asset management to oversee RLUSD’s reserves, aiming to enhance Ripple’s operational efficiency and service offerings.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, remarked on the partnership’s significance, stating, "Ripple USD addresses a critical gap in the market as a stablecoin developed for enterprise-grade financial use cases."
Industry Perspectives on Regulation
In conjunction with this announcement, Ripple CEO Brad Garlinghouse addressed the US Senate Banking Committee, advocating for more defined regulatory frameworks within the cryptocurrency landscape. He underscored the need for legislation that would provide consumer protections and foster innovation in the financial sector. Garlinghouse articulated that the "US is long overdue for crypto market structure legislation," which would create clearer jurisdictional boundaries and promote industry growth.
During a CNBC interview, he reflected on the partnership with BNY Mellon, noting that it reflects a shifting momentum in the industry from facing regulatory challenges to experiencing favourable developments. This optimistic outlook aligns with a general positive trend in the crypto market, where XRP has seen a nearly 5% increase in value over the past 24 hours, currently trading at US$2.42 (AU$3.69).
Conclusion
Ripple’s collaboration with BNY Mellon represents a strategic move in the evolving landscape of digital finance, focusing on institutional solutions in response to a burgeoning market for stablecoins. As Ripple continues to push for clearer regulatory guidelines, the stability and backing provided by BNY Mellon could bolster RLUSD’s growth potential, positioning it competitively against established players in the realm of digital assets.
