A custodian adding XRP and RLUSD to its roster carries more weight than an exchange listing.
On October 27, Ripple announced an expansion of its strategic partnership with BNY Mellon (BNY): BNY now supports XRP and the U.S. dollar stablecoin RLUSD on its digital asset custody platform, and plans to expand support for tokenized assets and investment products on the XRP Ledger (XRPL). This will enable institutional clients to mint and redeem RLUSD directly through BNY in the future. Ripple also announced a partnership with C2FO the same day, planning to bring financing and settlement activities for its Instant Pay service onto XRPL, with RLUSD used for settlement. This would allow suppliers to receive payment within seconds against approved invoices. The trade financing solution is still being developed.
Custody is a prerequisite for institutional capital to enter the market, but putting partnerships like this into practice depends on institutional clients opening accounts and transferring funds, which can take considerable time. It may not immediately translate into spot buying. If the price spikes on the news without on-chain data following suit, be cautious about chasing the rally.
Scenario one to watch: Will the volume of XRP and RLUSD held in BNY’s custody system increase? Scenario two: Will XRPL’s adoption for custody and settlement keep pace? Which data change would you most like to see first?
Source: Wu Blockchain
Image 1: Ripple expands partnership with BNY Mellon, bringing XRP and RLUSD into mainstream custody · Screenshot of source page
Image source: https://www.wublock123.com/news/ripple-expands-bny-mellon-partnership-tokenized-trade-finance-70792
On October 27, Ripple announced an expansion of its strategic partnership with BNY Mellon (BNY): BNY now supports XRP and the U.S. dollar stablecoin RLUSD on its digital asset custody platform, and plans to expand support for tokenized assets and investment products on the XRP Ledger (XRPL). This will enable institutional clients to mint and redeem RLUSD directly through BNY in the future. Ripple also announced a partnership with C2FO the same day, planning to bring financing and settlement activities for its Instant Pay service onto XRPL, with RLUSD used for settlement. This would allow suppliers to receive payment within seconds against approved invoices. The trade financing solution is still being developed.
Custody is a prerequisite for institutional capital to enter the market, but putting partnerships like this into practice depends on institutional clients opening accounts and transferring funds, which can take considerable time. It may not immediately translate into spot buying. If the price spikes on the news without on-chain data following suit, be cautious about chasing the rally.
Scenario one to watch: Will the volume of XRP and RLUSD held in BNY’s custody system increase? Scenario two: Will XRPL’s adoption for custody and settlement keep pace? Which data change would you most like to see first?
Source: Wu Blockchain
Image 1: Ripple expands partnership with BNY Mellon, bringing XRP and RLUSD into mainstream custody · Screenshot of source page
Image source: https://www.wublock123.com/news/ripple-expands-bny-mellon-partnership-tokenized-trade-finance-70792
