BNY Mellon Tapped to Safeguard Ripple’s RLUSD Stablecoin, Signaling a New Era for Institutional Crypto Custody

09. Jul 2025 Posted by Laurent C. on News

BNY Mellon, the world’s largest custodian bank with $43 trillion in assets under management, has been appointed as the primary custodian for Ripple Labs’ stablecoin RLUSD, in a strategic partnership poised to elevate institutional trust in crypto infrastructure.

Unlike retail-oriented stablecoins like Tether’s USDT or Circle’s USDC, Ripple’s RLUSD was designed specifically for enterprise utility, according to BNY Mellon. Despite its relatively modest market cap of $500 million, RLUSD now stands out for having backing from a legacy financial institution as the U.S. inches closer to regulating the stablecoin market.

As part of the collaboration, BNY Mellon will not only safeguard the dollar reserves behind RLUSD but also offer transaction banking services and work with Ripple to build integrated financial solutions around the token.

"This partnership marks a significant milestone," Ripple CEO Brad Garlinghouse said in a live interview on CNBC’s Squawk Box, calling it a sign of growing institutional confidence in the stablecoin space. “We’ve faced resistance for years. But working with the best-capitalized and most compliant institutions like BNY Mellon shows the tide is turning.”

The announcement comes on the heels of Ripple dropping its cross appeal in the long-running legal battle with the U.S. SEC, following a court decision to uphold a $125 million penalty. With legal uncertainty now in the rearview mirror, XRP has seen a 450% price surge over the past year and was trading around $2.38 at last check.

Caroline Butler, BNY’s global head of digital assets, framed the move as part of a larger transformation in global finance. In a written statement submitted to Congress, Butler said blockchain and stablecoins represent a vital evolution in payment infrastructure.

“Stablecoins like RLUSD show how the future of money is being reimagined,” she said. “We believe blockchain can coexist with and complement traditional finance.”

The deal echoes BNY’s earlier entry into stablecoin custody back in 2021, when it took on a similar role for Circle’s USDC. Now, its new alliance with Ripple puts RLUSD in a stronger position to compete in a market increasingly shaped by regulation and institutional adoption.