🏦 Ripple Taps Bank of New York for RLUSD Reserves — A Major Step Toward Stablecoin Credibility!
In a recent announcement, XRP issuer Ripple said that its enterprise-grade Ripple USD (RLUSD) stablecoin reserves would be primarily held by the world-renowned Bank of New York (BNY).
The news was made via a blog post, and RLUSD is different from other stablecoins since it is transparent, compatible with regulations, and promotes usefulness for institutions. The New York Department of Financial Services (NYDFS) Trust Company Charter is used to create the token, which is tied to the US Dollar (USD).
The VP of stablecoins at Ripple, Jack McDonald, said that Ripple USD fills a need in the industry by being built for enterprise-grade financial use cases and meeting the strict requirements of major financial institutions.
Recent announcements from Ripple have indicated that the company intends to grow its stablecoin infrastructure via the formation of strategic alliances in places other than the United States, including in Asia and Europe. The company's long-term goal is to capture a sizable chunk of the worldwide SWIFT system's traffic by acting as a go-between for conventional banking and the ecosystem of digital currencies.
The previous two weeks have seen a steady increase in token interest, with XRP futures Open Interest (OI) reaching $4.98 billion, up from $3.54 billion on June 23. The value of all unclosed or settled futures and options contracts is represented by OI. The roughly 30% surge shows that traders are confident in the token. The risk-on mentality is being boosted by bets on futures price hikes.
