Key takeaways
- BNY adds XRP and RLUSD institutional custody support
- Ripple partnership expands toward stablecoin issuance and redemption
- Companies explore tokenized trade finance with C2FO
BNY has added XRP and Ripple's RLUSD stablecoin to its institutional digital asset custody platform, expanding a Wall Street partnership that could eventually support stablecoin issuance, tokenized investments and trade finance on the XRP Ledger.
The companies announced the expansion on October 27 during Ripple Swell 2026 in New York. BNY, one of the world's largest financial custodians, oversaw $63.4 trillion in assets under custody or administration as of September 30.
According to BNY's official announcement, eligible institutional clients can now safeguard, hold and transfer XRP and RLUSD through the bank's Digital Asset Custody platform.
BNY Expands XRP Custody Beyond RLUSD Reserves
The announcement marks a significant expansion of an existing relationship.
BNY was already Ripple's primary custodian for RLUSD reserves and maintained a separate custody relationship with Ripple Prime. Its latest integration extends support to the digital assets themselves.
The distinction matters because holding assets backing a stablecoin is different from providing institutional custody of blockchain tokens.
Coinpaper previously covered BNY's reserve custody as Ripple expanded its stablecoin infrastructure.
BNY's new service also connects institutional investors to XRP, the native cryptocurrency of the XRP Ledger, rather than focusing exclusively on Ripple's dollar-backed token.
The bank's scale is substantial. It oversees $63.4 trillion in custody and administration assets and manages another $2.2 trillion.
However, those figures represent BNY's overall business, not XRP holdings or assets transferred to the XRP Ledger.
Ripple and BNY Plan Direct RLUSD Minting and Tokenized Finance
The partners intend to enable eligible BNY clients to mint and redeem RLUSD directly through the bank.
They are also exploring expanded custody support for tokenized investment products issued on XRPL.
Both initiatives remain subject to final BNY and regulatory approvals, with no launch dates disclosed.
Ripple says RLUSD has reached approximately $2.5 billion in market capitalization, while the XRP Ledger has processed more than 4.6 billion transactions since launch.
The developments follow Ripple's recent federal banking approval, which adds another element to its regulated institutional infrastructure.
Ripple has also expanded institutional tokenization through Franklin Templeton and Aviva Investors.
Those initiatives illustrate growing financial-industry interest in XRPL infrastructure without establishing equivalent purchases of XRP.
C2FO Partnership Targets Blockchain-Based Trade Finance
BNY and Ripple are additionally exploring a supply-chain financing initiative with C2FO, a working-capital platform connecting businesses with financing providers.
The proposed system would use XRPL to represent approved trade receivables digitally, potentially making them easier for institutional investors to finance and manage.
Unlike direct token purchases, trade finance involves funding real business obligations, including invoices owed to suppliers.
The plan builds on Ripple's broader institutional custody strategy, which increasingly combines asset safekeeping with tokenization and settlement infrastructure.
It also follows the company's Swell 2026 agenda, where institutional finance has become a central theme.