- It’s reported that over $500 million RLUSD is in circulation
- BNY brings top-tier safeguards, including holding both cash and Treasuries, managing incoming and outgoing transfers, and ensuring compliance and efficiency
- Ripple is also applying to the US Office of the Comptroller of the Currency (OCC) for a national trust bank charter
Ripple selected Bank of New York Mellon (BNY) to serve as the primary custodian for reserves backing its stablecoin, Ripple USD (RLUSD). It’s reported that over $500 million worth of RLUSD is currently in circulation.
This is rather big news for Ripple since BNY brings top-tier safeguards, including holding both cash and Treasuries, managing incoming and outgoing transfers, and ensuring compliance and efficiency. The partnership should result in greater credibility and deeper institutional trust for Ripple.
Ripple’s push to become a regulated financial institution
Ripple is also applying to the US Office of the Comptroller of the Currency (OCC) for a national trust bank charter, stepping further into regulated finance. The company is also seeking a Federal Reserve master account, which would allow direct settlement capabilities and 24/7 operations for RLUSD.
Partnering with BNY positions Ripple’s stablecoin as enterprise-ready, which is precisely what major banks, payment platforms, and corporates want before adopting crypto tools.
In a press release, Jack McDonald, SVP of Stablecoins at Ripple, said: “Ripple USD addresses a critical gap in the market as a stablecoin developed for enterprise-grade financial use cases, designed to meet the rigorous standards of leading financial institutions.”
It’s worth noting that, unlike retail-focused stablecoins, RLUSD emphasizes cross-border transfers, liquidity, and corporate utility, and BNY’s involvement will strengthen that notion.
Signs of a bigger trend
Interestingly enough, announcements and developments like these seem to be a part of a broader trend. For instance, crypto firms like Circle are also lobbying for clearer, formal frameworks under legislation like the recently advanced GENIUS and CLARITY acts.
Circle applied for both a trust charter and Federal Reserve access, while managing over $62 billion in USDC reserves. More precisely, at the end of last month, a file was submitted to the OCC for ‘First National Digital Currency Bank, N.A., ’ which would be a federally regulated trust institution that would manage USDC reserves and offer crypto custody services.
It all points to the fact that Ripple and Circle are part of a growing wave where firms such as BitGo, Coinbase, and Anchorage are also pursuing OCC charters.
Still, for Ripple specifically, it seems that the company is doing a concerted shift from crypto minimalism to full compliance and institutional adoption.
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