Ripple Labs has partnered with the Bank of New York Mellon (BNY Mellon) to make the financial institution the primary custodian of its new stablecoin $RLUSD. This partnership marks a significant move to deepen institutional trust and regulatory alignment for the stablecoin, allowing Ripple to bridge traditional finance with blockchain infrastructure more effectively.
After all, the approval of the Genius Act by the U.S. Senate ignited a real arms race for stablecoin issuers, as other issuers scrambled to meet the bill’s strict reserve, audit, and compliance requirements before it becomes law.
BNY Mellon is a huge proponent of greater regulatory clarity, and having it as an official custodian is also a significant push to deepen RULSD adoption in institutional trust. The institution is America’s oldest bank and a global leader in asset servicing.
Initially, RLUSD’s reserves were managed in-house by Ripple’s own trust company, operating under a New York Department of Financial Services (NYDFS) Trust Company Charter. While that alone already signaled deep regulatory significance, the move to BNY Mellon can be considered an upgrade as RLUSD will now be under a fund of over $50 trillion in assets under custody.
“BNY brings together demonstrable custody expertise and a strong commitment to financial innovation,” said Jack McDonald, Ripple’s SVP of Stablecoins while also framing the bank as the “ideal partner for RLUSD as we expand its institutional footprint.”
The timing is no accident. With U.S. lawmakers advancing stablecoin legislation that would require 1:1 fiat and Treasury backing, Ripple’s alignment with a federally regulated custodian like BNY Mellon positions RLUSD ahead of the compliance curve.
The Genius Act bill passed the U.S. Senate on June 17 and is now awaiting a voting date in the House of Representatives. As of today, Congress could begin voting procedures as soon as next week, but House leadership has not yet confirmed a specific date.
Bonus rewards for doing what you already do? Yes, please. Deposit on Phemex, trade once, and you could walk away with up to $1K in cashback—and even a SOL reward if you’re gunning for big volume.
