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- BNY added XRP and RLUSD support to its institutional digital asset custody platform.
- Eligible institutional clients can now safeguard and transfer XRP and RLUSD through BNY.
- BNY intends to enable direct client minting and redemption of RLUSD in the future.
XRP and RLUSD are now supported on BNY’s institutional Digital Asset Custody platform. Eligible clients can hold and transfer the assets through the bank, expanding their options for managing cryptocurrency and stablecoin holdings.
Custody Support Builds on Existing Relationship
BNY’s custody capabilities now cover XRP, the native asset of the XRP Ledger, and Ripple’s dollar-denominated stablecoin, RLUSD. The companies said institutional clients can safeguard and transfer the tokens through BNY’s existing custody operations.
The expansion builds on BNY’s role as the primary custodian of assets backing RLUSD. BNY also has a custody relationship with Ripple Prime.
Custody of RLUSD tokens is distinct from holding the reserves backing the stablecoin. The former involves safeguarding clients’ digital assets, while reserve custody concerns the assets supporting the issuer’s obligations to token holders. The addition provides institutional investors with another banking channel for holding and transferring the tokens.
Direct RLUSD Minting and Redemption Planned
BNY said it intends to work with Ripple to enable clients to mint and redeem RLUSD directly through the bank. That capability was presented as a future service, separate from the custody support already announced.
Minting creates stablecoin tokens against the required funding, while redemption allows eligible holders to exchange tokens through the issuer’s arrangements. The announcement did not provide a launch date or detailed client terms for accessing those functions.
BNY also intends to broaden support for tokenized assets and investment products issued on the XRP Ledger. The companies said intended future products remain subject to final BNY and regulatory approvals.
C2FO Initiative Targets Supply-Chain Financing
As an initial step in their trade-finance work, Ripple and BNY are exploring a supply-chain financing initiative with C2FO, a working-capital platform. The proposed work concerns tokenizing receivables, money owed to businesses, with the aim of broadening investor access to those assets.
Tokenization would digitally represent existing trade-finance assets on the XRP Ledger. The companies said this could simplify how receivables are managed and distributed, while C2FO identified financing approved receivables as a potential application.
The initiative remains exploratory and subject to client requirements. The announcement did not specify a commercial launch date or identify participating receivables portfolios.
