Ripple has stated that this partnership with BNY aims to address a critical gap in the current enterprise-focused stablecoin market. This move allows Ripple to utilize BNY’s services to support its operations while positioning BNY as its primary custodian.
Ripple USD Funds to Be Held Under BNY Custody
Ripple, one of the largest companies in the cryptocurrency ecosystem, has finally announced who will be the custodian of the funds backing Ripple USD (RLUSD). In a press release, the company announced that BNY, an institution that oversees $53.1 trillion in assets under custody, will secure over half a billion in assets for Ripple’s stablecoin.
The partnership involves Ripple utilizing BNY’s banking services to deliver seamless solutions to its customers, leveraging the trust established by the financial behemoth. This benefits RLUSD’s focus on enterprise utility, bringing security and speed different from what retail stablecoins can offer.
Jack McDonald, SVP of Stablecoins at Ripple, stated that with this move, Ripple USD “addresses a critical gap in the market” by adopting the rigorous standards of financial institutions.
Emily Portney, Global Head of Asset Servicing at BNY, stated:
As primary custodian for RLUSD, we’re proud to support the growth of digital assets by providing a differentiated platform, designed to meet the evolving needs of institutions in the digital assets ecosystem.
Ripple CEO Brad Garlinghouse highlighted the relevance of this partnership for the company, noting that it would boost the trust in the company, which has “leaned into compliance” with 60 global licenses in international markets.
Amina Bank, a Zug-based institution, recently became the first bank to provide custody and trading services for RLUSD amidst a surge in stablecoin adoption.
Earlier this month, Ripple filed for a national banking license with the U.S. Office of the Comptroller of the Currency (OCC), a move that would bring the company under federal oversight.
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