Ripple, the payments-focused digital asset firm, on Wednesday, named banking giant BNY Mellon as the primary custodian of reserve assets backing its U.S. dollar stablecoin Ripple USD (RLUSD).
BNY Mellon, one of the oldest and largest custody banks in the world overseeing $53 trillion of assets, will safeguard the stablecoin’s reserves and support the token’s operations with transaction banking services, including conversions during minting and redemption, according to a press release shared with CoinDesk.
RLUSD, launched in December and regulated by the New York Department of Financial Services (NYDFS), is backed by short-term U.S. Treasuries, money market funds and cash.
“BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure,” Jack McDonald, SVP of stablecoins at Ripple, said in a statement.
The move comes as stablecoins are enjoying a breakthrough moment in the broader financial world, with the U.S. advancing to regulate the sector.
Ripple recently applied for a national banking license with the U.S. Office of the Comptroller of the Currency. The company also filed for a Federal Reserve master account, which would allow it to custody RLUSD reserves directly with the central bank and further integrate with the U.S. financial system.
RLUSD saw rising demand as well. The token’s market capitalization has surpassed $500 million, growing over 30% through the past month, CoinGecko data shows.
Read more: Ripple Applies for Federal Bank Trust Charter, XRP Jumps 3%