Ripple has selected financial giant BNY Mellon as the primary custodian for its dollar-backed stablecoin, RLUSD. The partnership marks a significant step in Ripple’s mission to merge traditional finance (TradFi) with blockchain-based digital assets.

BNY Mellon, with over $43 trillion in assets under custody, is among the largest and oldest financial institutions globally. Apart from safeguarding RLUSD reserves, BNY will also provide Ripple with transaction banking services to support stablecoin operations at scale.

The deal, finalised on July 1 but made public on July 9, reflects Ripple’s growing ambition to offer enterprise-grade digital finance infrastructure. Ripple SVP of Stablecoins Jack McDonald described BNY as the “ideal partner” due to its “demonstrable custody expertise and strong commitment to innovation.”

RLUSD Built for Trust, Not Hype

RLUSD (Ripple Liquidity USD) was launched in December 2024 and is issued under the New York Department of Financial Services (NYDFS) Trust Charter. It is explicitly designed for utility and compliance, aiming to meet the needs of institutions and regulated markets, rather than riding the waves of crypto speculation.

The stablecoin is backed 1:1 by high-quality liquid assets, cash equivalents, and US Treasuries. Ripple has emphasised strict reserve management, clear redemption rights, independent audits, and full asset segregation, features that align closely with regulatory expectations.

This robust design aims to separate RLUSD from less transparent or riskier stablecoin models. Ripple’s efforts to secure regulatory clarity also include its recent application for a US national banking licence under the Office of the Comptroller of the Currency (OCC).

RLUSD Soars Past $500M in Circulating Supply

In just seven months since its debut, RLUSD has surpassed $500 million in circulating supply, making it one of the fastest-growing stablecoins of 2025. Issued on both the XRP Ledger and Ethereum, RLUSD now ranks among the top 20 dollar-pegged stablecoins by market capitalisation.

According to data from DeFiLlama, RLUSD currently holds the 16th spot, while CoinGecko reports daily trading volumes nearing $32 million. BeInCrypto noted that RLUSD saw a 47% month-on-month surge in June alone, driven by growing institutional demand and increased cross-border payment use.

This surge reflects growing investor and enterprise confidence in regulated, transparent stablecoins particularly at a time when stablecoin adoption continues to reshape digital finance.

Stablecoin Market Surges Amid Institutional Momentum

The broader stablecoin market is swelling, with total market capitalisation surpassing $255 billion. Over 95% of these assets are pegged to the US dollar, underscoring its dominance in global crypto liquidity.

Ripple’s strategic partnership with BNY Mellon positions RLUSD favourably amid a wave of institutional interest in tokenised finance. As central banks, fintechs, and global corporations explore blockchain-based solutions, RLUSD’s regulated and resilient framework may appeal to those seeking trusted entry points into crypto infrastructure.

Additionally, Swiss-based AMINA Bank has joined the ecosystem, offering custody and trading services for RLUSD, further cementing Ripple’s cross-border ambitions.

Ripple’s collaboration with BNY Mellon isn’t just about custody, it signals a deeper convergence between Wall Street-grade infrastructure and blockchain innovation. With over half a billion dollars in circulation, rapid adoption, and institutional backing, RLUSD is carving a niche as a high-trust, enterprise-grade stablecoin.