#RippleRLUSD 📢➰️🏧
1️⃣Ripple has chosen the Bank of New York Mellon (BNY Mellon) as the primary custodian of its US dollar-backed stablecoin, the Ripple USD (RLUSD). This decision aims to enhance regulatory compliance and institutional credibility of the RLUSD.
Here are the key points of this partnership:
* Role of BNY Mellon: The oldest bank in the United States and a global leader in asset management, BNY Mellon will be responsible for the custody of liquidity reserves and orchestrating fund movements to facilitate RLUSD conversions.
* Reasons for the choice: Ripple was attracted by BNY Mellon's expertise in digital asset infrastructure, its robust technology stack, and its ability to bridge the gap between traditional finance and the crypto ecosystem.
* Implications for the RLUSD: This partnership is expected to strengthen institutional investor confidence and support the rapid growth of the RLUSD, which has already surpassed $500 million in market capitalization. The RLUSD is designed for enterprise utility, particularly for cross-border transactions.
* Broader context: This collaboration 2️⃣is part of a larger trend where major traditional banks are increasingly getting involved in stablecoin infrastructure, a period sometimes dubbed the 'summer of stablecoins' due to the growing interest from businesses and institutions. Ripple also has broader banking ambitions, having applied for a U.S. banking charter and a master account with the Federal Reserve.
This partnership is seen as a significant step towards the institutional adoption of digital assets, providing greater stability and better regulatory compliance.📈🚦