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BNY now supports custody of XRP and RLUSD on its Digital Asset Custody platform, according to a joint announcement made on October 27, 2026. The expansion extends an established relationship in which BNY served as the primary reserve custodian for RLUSD prior to this update.
Expansion of Custody Services
The announcement details the addition of XRP and RLUSD to the bank’s digital asset custody capabilities. BNY already maintains a separate custody relationship with Ripple Prime. The new support allows the institution to safeguard these specific digital assets for its clients on the designated platform.
This development addresses institutional requirements regarding asset safeguarding and legal controls. For financial institutions, the integration of digital assets into existing custody frameworks involves settling liability, accounting for funds, and controlling access. The platform must also support the recovery of failed transfers and the movement of assets between custody and settlement systems.
Future Initiatives and Conditions
BNY and Ripple intend to explore direct minting and redemption of RLUSD for BNY clients. These proposed functions are subject to final bank and regulatory approvals. The parties have not stated that a finished service is currently in widespread use.
The institutions also plan to examine tokenized receivables and a supply-chain-finance initiative with C2FO. These exploratory steps are part of a broader effort to integrate digital assets into trade-finance applications. The announcement distinguishes between the current custody support and these future, conditional initiatives.
Treasury teams and trading desks require reconciliation, internal approvals, liquidity at the point of conversion, and auditable records to operate effectively. The expanded custody support is not a regulatory endorsement of XRP, nor is it proof that the contemplated receivables market has scaled. The next steps involve monitoring client availability, final approvals for mint-and-redeem services, and the definition of the C2FO product.
Frequently Asked Questions
What digital assets does BNY now support on its Digital Asset Custody platform?
BNY now supports custody of XRP and RLUSD on its Digital Asset Custody platform, as stated in the joint announcement on October 27, 2026.
Is the direct minting and redemption of RLUSD available to BNY clients?
The parties intend to explore direct minting and redemption of RLUSD for BNY clients, but these functions are subject to final bank and regulatory approvals and are not yet in widespread use.
