BNY Mellon to Serve as Custodian for Ripple’s New Stablecoin

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Big Tech & Banking Giants Back Stablecoin Push: Ripple Gains Momentum with BNY Mellon Custody

New York, NY – June 17, 2025 – A wave of interest in stablecoins is building across the corporate landscape, signaling a potential shift in how everyday transactions are handled. Industry leaders including Amazon, Walmart, Uber, Apple, and Airbnb are reportedly exploring the creation or adoption of their own stablecoins, cryptocurrencies designed to maintain a stable value – typically pegged to the US dollar. This move comes as companies seek faster, more efficient payment solutions, particularly for cross-border transactions and within their own ecosystems.

The latest advancement bolstering this trend is a meaningful partnership between Ripple and BNY mellon. BNY Mellon, a major custodian bank, will now act as the primary custodian for Ripple’s RLUSD stablecoin, facilitating the seamless movement of reserve assets and cash needed to support conversions. This collaboration represents a major step towards mainstream acceptance of stablecoins within the conventional financial infrastructure.

“BNY Mellon’s commitment to delivering end-to-end digital asset solutions is crucial for the growth of this space,” stated Emily Portney, Global Head of Asset Servicing at BNY Mellon. “Supporting RLUSD and working with Ripple allows us to contribute to the evolution of the financial system.”

Why the Sudden Interest?

Stablecoins offer a compelling alternative to traditional payment methods. Built on blockchain technology, they promise faster settlement times and reduced transaction costs, particularly for international payments. For large corporations like Amazon and Walmart, integrating stablecoins could streamline payments within their vast supply chains and offer new loyalty program options. Uber, Apple, and Airbnb could leverage stablecoins to reduce currency exchange costs and offer more seamless international services.

ripple, the company behind the XRP token and the RLUSD stablecoin (launched in December 2024), is strategically positioning itself at the center of this movement. A 13-year-old firm specializing in business-to-business payments, Ripple primarily serves banks and financial institutions requiring efficient cross-border solutions. The company is further solidifying its position by applying for a U.S. national banking charter and a direct access point to the Federal Reserve’s payment rails. This would allow Ripple to hold reserves directly with the central bank, a significant milestone for the crypto industry.

BNY Mellon’s Expanding Crypto Footprint

BNY mellon’s involvement isn’t new.The bank first entered the digital asset space in 2021 with the launch of a dedicated digital assets unit, initially focused on Bitcoin and other cryptocurrencies. The decision to custody RLUSD demonstrates a deepening commitment to the evolving digital finance landscape.

Implications for the Future

The growing adoption of stablecoins by major corporations and the backing of established financial institutions like BNY Mellon suggest that blockchain-based payment solutions are moving beyond niche applications. While regulatory hurdles remain, the potential benefits of increased efficiency, reduced costs, and faster settlement times are driving significant innovation and investment in this space.Arcyde.com will continue to monitor this developing story and provide updates on the evolving role of stablecoins in the global financial system.

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How might BNY mellon’s custodial services impact investor confidence in Ripple’s stablecoin?

The Partnership: A Deep Dive

BNY Mellon, a leading global investment services and investment management firm – wiht a notable presence in key markets like Germany – has been selected as the official custodian for Ripple’s forthcoming stablecoin. This collaboration marks a pivotal moment for both companies, bridging conventional finance with the rapidly evolving world of digital assets and blockchain technology. The announcement, made on July 9, 2025, signals a growing acceptance of stablecoins within established financial institutions.

Understanding the Role of a Custodian

In the context of digital assets, a custodian provides secure storage and management of private keys, effectively safeguarding the underlying assets. This is crucial for institutional investors and businesses like Ripple who require a robust and regulated framework for handling large volumes of digital currency. BNY Mellon’s custodial services will encompass:

Secure Storage: Utilizing advanced security protocols to protect Ripple’s stablecoin reserves.

Regulatory Compliance: Ensuring adherence to evolving regulations surrounding stablecoins and digital asset custody.

Reporting & Auditing: Providing transparent reporting and facilitating autonomous audits of the reserves.

Transaction Support: Streamlining the process of minting, burning, and transferring the stablecoin.

Ripple’s Stablecoin: Key Features and Goals

Ripple’s new stablecoin aims to address key challenges within the cryptocurrency ecosystem, particularly around price volatility and transaction speed. While specific details remain under wraps, the stablecoin is expected to be:

Fully Backed: Pegged to a fiat currency (likely the US Dollar) with reserves held in secure custodial accounts – managed by BNY Mellon.

Designed for Scalability: Built on the Ripple network to leverage its fast and low-cost transaction capabilities.

Focused on Real-World Use Cases: Targeting applications in cross-border payments, decentralized finance (DeFi), and tokenized assets.

compliant with Regulations: Developed with a strong emphasis on regulatory compliance to foster wider adoption.

Why BNY Mellon? The Strategic Significance

Ripple’s choice of BNY Mellon as its custodian isn’t arbitrary. Several factors likely influenced this decision:

Reputation & Trust: BNY Mellon boasts a long-standing reputation for security and reliability within the financial industry.

Existing Digital Asset capabilities: BNY Mellon has been actively expanding its digital asset services, including a platform for tokenized asset issuance and custody.

Global Reach: BNY Mellon’s global network provides the infrastructure needed to support a stablecoin with international ambitions.

Regulatory Expertise: navigating the complex regulatory landscape of stablecoins requires specialized expertise, which BNY Mellon possesses.

Implications for the Cryptocurrency Market

This partnership has several potential implications for the broader cryptocurrency market:

Increased Institutional Adoption: BNY Mellon’s involvement lends credibility to Ripple’s stablecoin and could encourage other institutions to explore similar ventures.

Enhanced Regulatory Clarity: The collaboration may prompt regulators to provide clearer guidance on stablecoin custody and issuance.

Greater Market Stability: A well-managed and regulated stablecoin can contribute to greater stability within the cryptocurrency market.

Competition in the Stablecoin Space: Ripple’s stablecoin will compete with existing players like Tether (USDT) and Circle (USDC), possibly driving innovation and lower fees.

The Future of Stablecoins and Custodial Services

The demand for stablecoins is projected to grow significantly in the coming years,driven by increasing adoption of DeFi,tokenized assets,and cross-border payments.This growth will necessitate robust custodial solutions like the one offered by BNY Mellon. Expect to see:

More Traditional financial Institutions Entering the Space: Banks and other financial institutions will likely expand their digital asset custody offerings.

Advancements in Custodial Technology: Innovations in security protocols, multi-party computation (MPC), and cold storage solutions will enhance the safety and efficiency of custodial services.

Increased Regulatory Scrutiny: Regulators will continue to refine their approach to stablecoins and digital asset custody, focusing on investor protection and financial stability.

Integration with Central Bank Digital Currencies (CBDCs): Custodial solutions may play a role in the issuance and management of CBDCs.