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BNY Mellon takes custody of Ripple stablecoin RLUSD

Ripple takes a new step toward traditional financial institutions.

By Mike Hesp
• 2 min read
BNY Mellon takes custody of Ripple stablecoin RLUSD

Ripple takes a new step toward traditional financial institutions. The company behind the XRP token announced that Bank of New York Mellon (BNY Mellon) will now custody its own RLUSD stablecoin, which was launched late last year.

BNY Mellon will serve as the primary custodian of the stablecoin. RLUSD will also be integrated into banking services for institutional clients.

“As a leading financial platform company, BNY aims to offer end-to-end solutions that meet the needs of institutional players in the digital asset landscape,” said Emily Portney, Global Head of Asset Servicing at BNY Mellon.

Ripple, which positioned itself early on between traditional and digital finance with its XRP technology, strengthens its foothold in the banking sector through this stablecoin. RLUSD, pegged to the U.S. dollar, has already reached a market cap of $500 million.

The move sparks speculation: could RLUSD eventually take over XRP’s role as a bridge currency in cross-border payments? The debate is growing louder, especially as Ripple recently applied for a national banking charter with the U.S. Office of the Comptroller of the Currency (OCC).

Meanwhile, XRP is up three percent from yesterday. As of writing, the token trades at $2.44.

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