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Ripple has made a significant move in the digital asset space by partnering with global banking powerhouse BNY Mellon to custody its growing RLUSD stablecoin reserves. The development marks yet another strategic step by Ripple to strengthen its position in institutional finance, as it targets large-scale adoption for its enterprise-grade stablecoin.
The partnership was confirmed on July 9, with Ripple officially stating that The Bank of New York Mellon Corporation will take over primary custody responsibilities for RLUSD, Ripple’s U.S. dollar-backed stablecoin. With this revealed, Ripple and BNY Mellon aim to bridge the traditional financial world with emerging crypto infrastructure—especially in areas of compliance, security, and scalability.
“Ripple and BNY are jointly committed to paving the way for digital asset adoption at institutional scale,” the company said in a statement, highlighting the shared goal of creating a seamless connection between conventional finance and blockchain-based tools.
Ripple’s RLUSD has seen remarkable growth since its introduction in late 2024. According to CoinGecko, the stablecoin currently holds the 16th position among global stablecoins with a market capitalization of $501 million and daily trading volume exceeding $51 million. Though these figures still trail behind stablecoin giants like Tether (USDT) and Circle (USDC), RLUSD’s rapid rise suggests growing institutional interest in alternatives specifically designed for enterprise use.
Unlike Tether, which is popular among retail traders, Ripple has positioned RLUSD squarely for institutional clientele. The goal is to provide a reliable, regulation-compliant digital dollar that can be integrated across enterprise ecosystems. To support this vision, BNY Mellon brings decades of custody experience, now expanded into the digital asset space with customized infrastructure for stablecoin oversight.
Jack McDonald, Ripple’s Senior Vice President of Stablecoins, emphasized the importance of this alliance, calling it a move that fills a key gap in the stablecoin market. “BNY brings together demonstrable custody expertise and a strong commitment to financial innovation… making them the ideal partner for Ripple and RLUSD,” he said.
As the official custodian of RLUSD’s reserves, BNY Mellon will play a vital role in safeguarding assets and providing audit-ready financial oversight. The collaboration is expected to improve Ripple’s operational capabilities, offering advanced transaction banking and settlement support to institutional clients using RLUSD across payment networks and smart contract platforms.
Ripple’s momentum didn’t stop there. CEO Brad Garlinghouse also appeared before the U.S. Senate Banking Committee this week, urging lawmakers to pass clear and comprehensive crypto regulation. In his remarks, Garlinghouse said the United States is “long overdue” for regulatory clarity, arguing that a well-defined framework would help protect consumers, promote innovation, and enable financial growth in the sector.
In an interview with CNBC following his Senate appearance, Garlinghouse tied the BNY Mellon deal to broader industry trends. “This is indicative of the shift in sentiment—from headwinds to tailwinds,” he said, expressing optimism that traditional finance is beginning to embrace digital assets at a deeper level.
XRP responded quickly to the news, rallying nearly 5% within 24 hours of the revealed. It is now trading at $2.42, benefiting not only from Ripple’s growing network but also from broader bullish sentiment across the crypto market. Bitcoin’s recent surge to an all-time high has also lifted altcoins like XRP, which often trail BTC in sentiment and capital flow.
Ripple’s ambition to blend regulatory compliance with crypto-native innovation appears to be paying off. By partnering with a major institution like BNY Mellon, the company is signaling that stablecoins are no longer fringe fintech experiments—they’re becoming critical components of modern finance. And with over $500 million already committed to RLUSD, the stablecoin is proving that there’s real demand for professionally managed, enterprise-grade digital dollars.
As Ripple pushes further into institutional markets and works closely with regulators, the company is attempting to redefine what role blockchain can play in the global financial system. The BNY Mellon deal is a powerful step toward that goal—and one that the market appears to be embracing, if XRP’s latest price jump is any indication.
