Oldest American Bank Assumes Custody of RLUSD for Ripple
In a groundbreaking move, The Bank of New York Mellon Corporation (BNY Mellon) has been announced as the primary custodian for Ripple's stablecoin, RLUSD. This partnership, unveiled in July 2025, marks a significant step towards bridging the gap between traditional finance and the digital asset ecosystem.
The agreement sees BNY Mellon safeguarding the RLUSD stablecoin reserves, which are backed by cash and short-term U.S. Treasury bonds. This partnership will provide Ripple with superior operational connectivity, enabling seamless conversions and transactions.
In addition to custody services, BNY Mellon will also offer transaction banking services to support RLUSD’s operations. This includes handling cash holdings and connectivity to payment systems, which is crucial for Ripple's ambition to have RLUSD serve as an enterprise-grade stablecoin for cross-border payments and institutional use.
BNY Mellon's involvement in the cryptocurrency market is not new. As the oldest bank in the United States, the institution has been dipping its toes in the cryptocurrency market for years, and since the early days of the COVID-19 pandemic, it has launched several Bitcoin and crypto-related products.
This partnership with Ripple is not limited to RLUSD custody. BNY Mellon provides custody to various digital asset firms, such as Grayscale. The collaboration also places RLUSD in competition with other stablecoins like Circle’s USDC, as BNY Mellon also provides custody services for Circle.
Emily Portney, Global Head of Asset Servicing at BNY Mellon, commented that they are proud to support the growth of digital assets by providing a differentiated platform for institutions in the digital assets ecosystem.
RLUSD, pegged to the US dollar at a 1:1 ratio, is intended to improve the speed, cost, and efficiency of cross-border payments. It is one of the few global stablecoins issued under the New York Department of Financial Services (NYDFS) Trust Company Charter, and it is not focused on retail engagement but is purpose-built for enterprise utility.
The partnership aligns with Ripple’s broader strategy, which includes applying for a national bank charter and a Federal Reserve master account for its trust subsidiary. The involvement of BNY Mellon may also ease regulatory acceptance of RLUSD, especially as U.S. stablecoin regulations evolve.
RLUSD operates on both the XRP Ledger and Ethereum blockchain, enhancing its utility and reducing cross-border transaction costs, which fits with Ripple’s goal of making RLUSD a major stablecoin in global payments.
In conclusion, BNY Mellon’s role as the primary custodian of RLUSD reserves provides Ripple with enhanced operational capabilities, institutional credibility, and a stronger competitive position for RLUSD in the stablecoin market, facilitating Ripple’s vision of integrating digital assets into mainstream finance.
[1] CoinDesk (2025). BNY Mellon to Custody Ripple's Stablecoin Reserves. [online] Available at: https://www.coindesk.com/business/2025/07/13/bny-mellon-to-custody-ripple-stablecoin-reserves/
[2] The Block (2025). BNY Mellon to Custody Ripple's Stablecoin Reserves. [online] Available at: https://www.theblockcrypto.com/linked/112319/bny-mellon-to-custody-ripple-stablecoin-reserves
[3] Fintech Futures (2025). BNY Mellon to Custody Ripple's Stablecoin Reserves. [online] Available at: https://fintechfutures.com/2025/07/bny-mellon-to-custody-ripple-stablecoin-reserves/
- The partnership between BNY Mellon and Ripple marks a significant milestone, bridging the gap between traditional banking-and-insurance and the crypto industry, particularly in trading operations with RLUSD, the digital asset ecosystem's enterprise-grade stablecoin for cross-border payments.
- BNY Mellon offers more than custodial services for RLUSD, also including transaction banking services such as handling cash holdings and connectivity to payment systems, a crucial aspect for Ripple's vision.
- Having worked with digital assets for years, BNY Mellon has launched several Bitcoin and crypto-related products, and this partnership with Ripple expands their portfolio by providing custodial services for various digital asset firms.
- With BNY Mellon providing custody for RLUSD, Ripple's stablecoin competes with other industry leaders like Circle's USDC, enhancing its position in the rapidly growing crypto sector and facilitating broader integration of digital assets into mainstream finance, including trading and banking services.
