Key Points:
- Ripple has appointed The Bank of New York Mellon as the primary custodian for its US dollar stablecoin, Ripple USD (RLUSD).
- RLUSD is backed by U.S. Treasuries, money market funds, and cash, and is regulated by the New York Department of Financial Services. The token saw a 30% increase in a month, surpassing $500 million in market capitalization.
- Stablecoins are gaining traction in the wider financial sector as U.S. legislation aimed at regulating this asset class progresses.
Ripple’s recent partnership underscores its strategic move to integrate more closely with the U.S. financial system. The Bank of New York Mellon, being one of the oldest custody banks globally, will manage the reserves of Ripple USD and facilitate its operations including transactions for minting and redemption.
Jack McDonald, SVP of Stablecoins at Ripple, stated, “BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure.”
As demand for RLUSD grows, the token has experienced a significant rise in market capitalization, indicating a broader acceptance of stablecoins as a critical component of modern finance.
