Ripple has appointed BNY Mellon as the primary reserve custodian for its enterprise-grade stablecoin, Ripple USD (RLUSD). The announcement, made on July 9, 2025, marks a significant milestone in Ripple’s stablecoin strategy. RLUSD, launched earlier this year, targets institutions and enterprise users who require transparent, regulated, and scalable digital payment solutions. Selecting BNY Mellon as its custodian adds a strong layer of institutional oversight and trust. This move also reinforces Ripple’s ongoing efforts to align with U.S. financial regulations.
ANNOUNCEMENT: BNY selected to serve as the primary reserve custodian of @Ripple’s enterprise-grade stablecoin, Ripple USD (#RLUSD).
— BNY (@BNYglobal) July 9, 2025
#BNY and Ripple are jointly committed to paving the way for digital asset adoption at institutional scale and together are helping to bridge the… pic.twitter.com/RjyDyBj0Qk
Understanding the Role of a Stablecoin Custodian
Custodians are essential to stablecoin infrastructure, especially for fiat-backed models. They safeguard the reserves that support each issued token. For Ripple USD, this means every RLUSD token must be backed by an equivalent amount in cash or cash-equivalent assets held by a trusted custodian. BNY Mellon, with over $53 trillion in assets under custody and administration as of March 2025, brings unmatched scale and credibility. Its long-standing reputation for asset safekeeping makes it a logical choice to help Ripple navigate the complex regulatory environment surrounding U.S.-based stablecoins.
RLUSD: A Stablecoin Built for Enterprise
Ripple USD (RLUSD) is not designed for retail users in peer-to-peer transactions. Instead, it serves business-focused use cases such as cross-border payments, liquidity provisioning, and institutional settlement. It is issued by Ripple Markets, LLC, a subsidiary regulated as a New York Department of Financial Services (NYDFS) Trust Company. This regulatory status enables Ripple to issue RLUSD under strict compliance with financial controls and reporting requirements. Furthermore, RLUSD is fully backed by U.S. dollar reserves, with monthly attestations from third-party auditors to ensure transparency.
Why BNY Mellon Matters to Ripple’s Strategy
BNY Mellon adds significant weight to RLUSD’s long-term adoption roadmap. The bank’s experience in both traditional custody and digital asset services helps bridge gaps between legacy finance and blockchain. It was the first U.S. bank to offer custody for both traditional and digital assets on a single platform. By managing RLUSD’s reserve accounts, BNY Mellon ensures segregated custody of funds, robust security, and operational clarity. These safeguards matter greatly to enterprise clients, who demand institutional-grade infrastructure and risk management.
Institutional Demand and RLUSD Growth
Ripple has stated that RLUSD is already gaining momentum in the stablecoin market. Since launch, the stablecoin has surpassed $500 million in circulation. This represents a roughly 30% increase over the previous month, indicating rising demand among enterprise clients. The broader stablecoin market has grown steadily in 2025, driven by increasing adoption of tokenized dollars in trade finance, remittances, and on-chain settlement. By partnering with BNY Mellon, Ripple positions RLUSD as a credible alternative to incumbents like USDC and USDT, especially for regulated institutions operating under compliance-heavy mandates.
Regulatory Positioning: Preparing for the Future
Ripple’s appointment of BNY Mellon as custodian also fits within a larger regulatory strategy. Ripple is currently seeking a U.S. national trust bank charter for its Standard Custody & Trust subsidiary. This would allow the company to serve as a federally regulated entity with access to the U.S. Federal Reserve’s payment rails. Additionally, Ripple has applied for a Federal Reserve master account, which would enable direct settlement capabilities with the central bank. These efforts reflect Ripple’s broader intent to comply fully with U.S. financial regulations and integrate RLUSD into the country’s institutional financial system.
Implications for the Digital Asset Ecosystem
This partnership carries several long-term implications for the crypto and traditional finance sectors. First, it affirms that legacy banks remain critical to digital asset infrastructure, especially when custody and compliance are involved. Second, it highlights that enterprise-grade stablecoins are evolving into tools for regulated institutions rather than just consumers. Third, it underscores the role of strong custodial partnerships in building trust with regulators and financial intermediaries. RLUSD’s growth could also encourage more banks and fintechs to explore tokenized dollar strategies backed by similar regulatory and custodial assurances.
Bridging Trust Between Crypto and Finance
BNY Mellon’s appointment as the custodian of Ripple USD solidifies the stablecoin’s position in the institutional market. With its regulatory-first design, robust backing, and growing adoption, RLUSD is poised to become a serious player among enterprise-focused stablecoins. BNY Mellon brings decades of custodial experience and a growing digital asset footprint to support RLUSD’s expansion. This partnership not only enhances market confidence but also demonstrates how blockchain-based finance continues to evolve alongside trusted financial infrastructure.
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