Ripple Taps The Oldest US Bank to Custody RLUSD

The Bank of New York Mellon Corporation (BNY Mellon) continues to serve as a global partner for different cryptocurrency-related initiatives, and the latest involves Ripple and its recently launched stablecoin.

According to a press release by the company, the oldest bank in the US will serve as a custodian for RLUSD.

The statement reads that both parties are “jointly committed to paving the way for digital asset adoption at institutional scale, and together, are bridging the gap between traditional finance and crypto.”

RLUSD saw the light of day at the end of last year when the New York Department of Financial Services (NYDFS) gave the green light. It’s now one of the few global stablecoins issued under the agency’s Trust Company Charter.

It is pegged to the US dollar at a 1:1 ratio, and it is backed by “high-quality liquid assets,” the company stated. Unlike other stablecoins, RLUSD is not focused on retail engagement. Instead, it has been “purpose-built for enterprise utility, particularly in improving the speed, cost, and efficiency of cross-border payments.”

“As primary custodian for RLUSD, we’re proud to support the growth of digital assets by providing a differentiated platform, designed to meet the evolving needs of institutions in the digital assets ecosystem,” commented Emily Portney, Global Head of Asset Servicing at BNY.

In addition to the collaboration for RLUSD custody, Ripple will also utilize BNY’s transaction banking services to “underpin its operations and continue delivering seamless solutions for its customers.”

BNY was one of the first US banks to dip its toes in the cryptocurrency market years ago, well before the country’s political and regulatory landscape became as favorable as it is now. Since the early COVID days, the institution has launched several BTC and crypto-related products and provides custody to certain digital asset firms, such as Grayscale.