On Wednesday, Blockchain payments solution company Ripple said it selected The Bank of New York Mellon Corporation (BNY) as the financial institution of choice to custody its RLUSD (Ripple USD) reserves, as per a company announcement.
Ripple’s USD coin is a stablecoin powered by XRP’s blockchain technology, and the new initiative better connects Ripple’s offerings to the traditional financial sector.
Ripple CEO Brad Garlinghouse posted about the update on X, emphasizing the need for structured legislation for cryptocurrency in the U.S.
SVP Jack McDonald for stablecoins at Ripple said the RLUSD has strong utility as a stablecoin with enterprise-grade financial use cases, especially for meeting the requirements of financial institutions.
“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, making them the ideal partner for Ripple and RLUSD,” said McDonald.
“As primary custodian for RLUSD, we’re proud to support the growth of digital assets by providing a differentiated platform, designed to meet the evolving needs of institutions in the digital assets ecosystem,” said Global Head of Asset Servicing at BNY Emily Portney.
Source: Google Finance
XRP shares were trading at $2.40 following the announcement and were up by 3.69% at the time of reporting.