Ripple and BNY have expanded their digital custody collaboration to include support for XRP and RLUSD on BNY’s platform, alongside plans for stablecoin minting and redemption and tokenized trade finance. The companies’ joint release outlines a push beyond holding digital assets toward using them in payments, collateral and investment products.

Key takeaways

  • BNY’s custody platform supports XRP and Ripple’s RLUSD stablecoin.

  • Direct RLUSD minting and redemption through BNY are planned.

  • The collaboration includes exploring supply chain finance with C2FO.

Ripple and BNY expand digital custody services

BNY’s Digital Asset Custody platform supports both XRP and Ripple’s stablecoin, RLUSD. The expanded collaboration broadens the companies’ institutional custody work while adding plans for blockchain-based financial services.

BNY also intends to let clients mint and redeem RLUSD directly through its services. That remains a planned capability, distinct from the custody support already described in the release.

BNY’s existing reserve and custody roles

BNY already serves as RLUSD’s primary reserve custodian and maintains a custody relationship with Ripple Prime. The broader digital custody collaboration between Ripple and BNY builds on those existing arrangements.

The roles cover both custody of the stablecoin’s reserves and the separate relationship with Ripple Prime.

Trade finance and investment products on the XRP Ledger

Expanding their collaboration, the companies intend to increase support for tokenized assets and investment products built on the XRP Ledger (XRPL). They also intend to advance tokenized trade finance on the network.

Among these efforts is the exploration of a supply chain finance project alongside C2FO, a platform focused on working capital. The initiative aims to expand investor access to approved receivables.

RLUSD and XRPL in figures

Ripple puts RLUSD’s market capitalization at approximately $2.5 billion. The companies’ release also states that XRPL has handled more than 4.6 billion transactions since launch.

Transactions on the ledger settle in approximately three to five seconds, according to the release.

Payments and collateral are the stated goal

Ripple President Monica Long described the collaboration’s goal as making tokenized assets usable beyond their initial issuance. She said the focus is on making them “usable for payments and collateral across financial markets.”

BNY’s Chief Innovation and Market Transformation Officer, Carolyn Weinberg, described future market infrastructure as connecting payments, liquidity, collateral and securities through bridges between traditional systems and always-on blockchain technology.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.

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