This week one of America’s oldest financial institutions created a stir after it updated a Ripple announcement from last week. The announcement was about how Ripple selected the Bank of New York Mellon (BNY) for the primary custody of Ripple USD (RLUSD) reserves.
As part of the collaboration, BNY will serve as the primary reserve custodian of RLUSD.
Emily Portney, Global Head of Asset Servicing at BNY shared yesterday how “as primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions and are proud to be working closely with Ripple to continue propelling the future of the financial system.”
What does the Announcement Mean for the Wider Market?
Investors have been bullish about the news. The value of XRP has surged to $2.43 today (Coinbase) from a low of $2.18 when the announcement was made by Ripple on July 1.
It’s not the value of XRP that is the main point of interest here. It is the institutional grade credibility that the deal gives to Ripple’s wider ambitions. Ripple’s stablecoin reserves will now be held by BNY Mellon, which means that investors will not worry as much about liquidity when using RLUSD in the future.
On top of the above, BNY Mellon will also provide transaction banking services, leveraging RLUSD’s strong use cases. Since the announcement demand for RLUSD increased by over 260 percent.
For Ripple, it’s a strategic win in its mission to modernize global payments, while for BNY Mellon, it strengthens its position in the digital asset space, with its stock (BK) seeing gains since early 2025.
Brad Garlinghouse, CEO of Ripple, shared with CNBC yesterday how Ripple had been late to the stablecoin revolution. But that going forward the focus was continuing to develop the collaboration with institutional clients.
Author: Andy Samu
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
#XRP #Ripple #Crypto #Stablecoin #BNYMellon #RLUSD
See Also:
How XRP Became a Leading Cryptocurrency | Disruption Banking
Is the End of the Ripple-SEC Lawsuit a Turning Point for Crypto Regulation? | Disruption Banking
