Bank of New York Mellon to Provide USD Reserve Custody Services for Ripple's RLUSD Stablecoin

On July 9, according to The Block, Ripple announced on Wednesday that it has selected Bank of New York Mellon to custody the U.S. dollar cash and U.S. Treasury reserves of its stablecoin $RLUSD, with $RLUSD's circulating supply exceeding $500 million.

As one of the largest custodian banks in the United States, Bank of New York Mellon, with approximately $52 trillion in assets under management, will provide secure custody for $RLUSD's reserve assets and assist with liquidity management. The move aims to ensure that $RLUSD holders can redeem U.S. dollars at a 1:1 ratio, with the redemption mechanism following the same regulatory standards as traditional money market funds.

Bank of New York Mellon established a dedicated digital asset division in 2021 and officially opened its services to institutional-grade crypto clients in 2022.