BNY has become the primary custodian for the reserves backing Ripple USD (RLUSD), a stablecoin issued by Ripple.
The arrangement designates BNY to manage the reserve assets relating to RLUSD and provide transaction banking services to support the stablecoin’s operations.
The stablecoin, which is issued under a New York Department of Financial Services (NYDFS) Trust Company Charter, is targeted at institutional use rather than retail. Ripple has positioned RLUSD as a stablecoin intended for enterprise-grade financial applications, especially in the context of cross-border payments where cost, speed, and efficiency are central considerations.
BNY’s role in RLUSD infrastructure
Under the new agreement, BNY will provide custody services for RLUSD reserves. The bank’s responsibilities will include facilitating the movement of reserve assets and handling related cash processes to support the stablecoin’s convertibility. According to BNY representatives, the collaboration reflects the institution’s broader strategy to offer infrastructure services that support both traditional and digital financial instruments.
Ripple officials said RLUSD was developed to address gaps in the enterprise digital asset market, particularly by meeting the operational and compliance standards expected by regulated financial institutions. The company noted that BNY was selected for its background in custody services and its approach to digital asset infrastructure.
BNY officials added that the bank aims to support the RLUSD ecosystem by delivering integrated, end-to-end services and ensuring interoperability between tokenised and traditional assets. Both companies framed the partnership as part of their plans to facilitate the adoption of digital assets within traditional financial systems.
Not too long ago, Ripple announced its plans to apply for a national bank charter in the US. This move underlines its push towards regulatory clarity and integration with the traditional financial ecosystem.
By securing this charter, Ripple would be able to settle payments more efficiently and minimise costs by bypassing intermediary banks. Additionally, the company would be able to facilitate more legitimacy after what cryptocurrency firms claim has been regulatory exclusion. Ripple’s announcement, which was made by its CEO, Brad Garlinghouse, in an X post on 2 July 2025, follows a similar move made by Circle, another firm operating in this sector.
