Ripple and BNY are expanding their partnership beyond digital asset custody to explore blockchain-based trade finance.
BNY now supports XRP and Ripple’s stablecoin RLUSD on its Digital Asset Custody platform, allowing eligible institutional clients to hold and transfer both assets.
The move builds on BNY’s existing role as RLUSD’s primary reserve custodian and its custody relationship with Ripple Prime.
The companies also plan to support tokenised assets and investment products issued on the XRP Ledger (XRPL).
They aim to enable BNY clients to mint and redeem RLUSD directly through the bank, subject to final BNY and regulatory approvals.
“We’re moving past the initial issuance of assets onchain – now, it’s all about making these tokenised assets usable for payments and collateral across financial markets.
With BNY, we’re connecting the necessary components of financial infrastructure on the XRP Ledger so institutions can move from holding digital assets to using them within capital markets and trade finance seamlessly.”
said Monica Long, President of Ripple.
“Future market infrastructure will deliver connectivity across payments, liquidity, collateral and securities, driven by architected bridges between traditional scaled systems and always-on blockchain technology.
In collaboration with Ripple, we are working to shape a more continuous, efficient and resilient financial system, paving the way for broader institutional adoption.”
said Carolyn Weinberg, Chief Innovation and Market Transformation Officer at BNY.
Ripple and BNY are also working with working capital platform C2FO to explore a supply chain finance initiative involving tokenised trade receivables on the XRPL, with the aim of expanding investor access.
Ripple reported that RLUSD has reached approximately US$2.5 billion in market capitalisation, while the XRP Ledger has processed more than 4.6 billion transactions since launch.
Featured image: Edited by Fintech News Switzerland, based on image by lifeforstock via Magnific
