BNY Mellon Tapped as Ripple’s Stablecoin Custodian

Wall Street’s oldest bank, BNY Mellon, is gaining prominence in the crypto economy. This week, stablecoin issuer Ripple selected the 241-year-old institution as the primary custodian for the reserve assets backing its $500 million stablecoin, Ripple USD (RLUSD).

Ripple confirmed that BNY Mellon will manage a mix of U.S. Treasury bills and other short-term notes supporting the RLUSD. This strengthens BNY’s position as a key player in stablecoin infrastructure.

A Founding Father’s Bank Leads a Crypto Revolution

Founded in 1784 by Alexander Hamilton, BNY Mellon now finds itself at the center of digital finance. Beyond custody, the bank will also provide transaction banking services and leverage Ripple’s blockchain technology to support stablecoin operations.

Ripple’s Jack McDonald praised BNY as “the ideal partner,” citing the firm’s custody expertise and commitment to financial innovation.

Stablecoins Power a Growing Share of Crypto Activity

Stablecoins are cryptocurrencies pegged to assets like the U.S. dollar. Unlike volatile crypto assets, stablecoins offer price stability, making them ideal for payments and trading. They now represent the bulk of transaction volume across the crypto market.

Ripple’s RLUSD is the eighth-largest stablecoin by circulating market capitalization. With BNY’s support, Ripple hopes to scale RLUSD to challenge bigger players like USDC and Tether.

BNY Mellon Already Custodies Circle’s USDC Reserves

This isn’t BNY Mellon’s first move into stablecoin infrastructure. The bank already manages reserves for USDC, issued by Circle, the world’s second-largest stablecoin.

BNY’s involvement with both USDC and RLUSD makes it one of the few traditional institutions actively supporting multiple stablecoin projects — a rare stance among legacy banks.

Wall Street Races to Join the Stablecoin Boom

With potential legislation advancing in Congress, stablecoin adoption is gaining regulatory traction. President Trump has expressed support for legal clarity around stablecoins, encouraging financial institutions to explore the space.

Circle’s stock has surged since going public, while major U.S. banks — including JPMorgan, Wells Fargo, Citigroup, and PNC — are reportedly considering launching their own stablecoin products in collaboration.

Institutional Crypto Activity Is Heating Up

Wall Street’s interest in crypto goes beyond stablecoins. Morgan Stanley and Charles Schwab plan to offer crypto investments via their wealth management platforms in 2025.

Schwab already offers margin loans backed by crypto ETF holdings. These moves show how institutions are increasingly integrating stablecoin and crypto products into mainstream portfolios.

BNY Mellon’s Move Signals a New Financial Era

BNY Mellon’s partnership with Ripple marks a turning point. By backing stablecoin reserves, the bank is validating the role of digital assets in institutional finance.

This deal could inspire other financial giants to step into stablecoin services — from custody to issuance — reshaping the relationship between traditional banking and crypto markets.