Ripple and BNY have expanded their digital custody collaboration, adding support for XRP and RLUSD. The two parties jointly stated that this collaboration also includes stablecoin issuance and redemption, as well as a tokenized trade financing program.
The statement indicates that the focus of their cooperation is shifting from merely holding digital assets to using them for payments, collateral, and investment products.
The digital asset custody platform of BNY will simultaneously support the stablecoins RLUSD of XRP and Ripple. This collaboration expands the custody services offered to institutions by both parties and adds blockchain-based financial service plans.
BNY also plans to allow customers to directly mint and redeem RLUSD through its services. The statement indicates that this is still a planned capability, different from the already disclosed managed support.
BNY currently serves as the main reserve custodian for RLUSD and maintains a custodial relationship with Ripple Prime. The broader digital custody cooperation between Ripple and BNY is built upon these existing arrangements.
These roles include not only the custody of stablecoin reserves but also an independent relationship with Ripple Prime.
As cooperation expands, both parties plan to increase support for tokenized assets and investment products on XRP Ledger ( XRPL ), as well as to promote tokenized trade financing on that network.
One of the efforts is to explore supply chain financing projects together with C2FO, a platform that focuses on working capital. The plan aims to expand investors' access to approved accounts receivable.
Ripple estimates that the market value of RLUSD is approximately $2.5 billion. The two parties also stated that since its launch, XRPL has processed over 4.6 billion transactions.
According to the statement, the transaction settlement time on this ledger is approximately 3 to 5 seconds.
Ripple President Monica Long stated that the goal of this collaboration is to enable tokenized assets to play a role beyond their initial issuance. She mentioned that the focus is on making these assets “usable for payments and collateral in financial markets.”
BNY, the Chief Innovation and Market Transformation Officer, stated that the future market infrastructure will connect payments, liquidity, collateral, and securities through a bridge between traditional systems and 24/7 blockchain technology.
This article was generated with the assistance of artificial intelligence and has been reviewed by an editorial team.
