Ripple and BNY have expanded their digital custody partnership to include support for XRP and RLUSD. In a joint statement, the two parties noted that the collaboration also encompasses stablecoin minting and redemption, as well as a tokenized trade finance initiative.
The statement indicates that the focus of the partnership is shifting from simply holding digital assets to using them for payments, collateral, and investment products.
BNY’s digital asset custody platform will simultaneously support XRP and Ripple’s stablecoin, RLUSD. This partnership expands both parties’ institutional custody offerings and enhances their blockchain-based financial services initiatives.
BNY also plans to allow clients to directly mint and redeem RLUSD through its services. The statement noted that this remains a planned capability, distinct from the previously disclosed custody support.
BNY currently serves as the primary reserve custodian for RLUSD and maintains a custodial relationship with Ripple Prime. Ripple’s broader digital custody collaboration with BNY builds upon these existing arrangements.
These roles include both the custody of stablecoin reserves and independent relationships with Ripple Prime.
As the partnership expands, both parties plan to increase support for tokenized assets and investment products on the XRP Ledger (XRPL) and advance tokenized trade finance on the network.
One initiative involves exploring supply chain financing projects with C2FO, a platform focused on working capital. The program aims to expand investors’ access to approved receivables.
Ripple estimates the market capitalization of RLUSD to be approximately $2.5 billion. The joint statement also noted that since its launch, the XRPL has processed over 4.6 billion transactions.
According to the statement, transaction settlement on this ledger takes approximately 3 to 5 seconds.
Ripple President Monica Long said the goal of this partnership is to enable tokenized assets to serve a purpose beyond their initial issuance. She emphasized that the focus is on making these assets “usable for payments and collateral in financial markets.”
Carolyn Weinberg, Chief Innovation and Market Transformation Officer at BNY, said that future market infrastructure will connect payments, liquidity, collateral, and securities through a bridge between traditional systems and 24/7 blockchain technology.
This article was generated with the assistance of artificial intelligence and reviewed by the editorial team.