New York Mellon Bank will provide dollar reserve custody services for Ripple's stablecoin RLUSD.

On July 9th, as per The Block, Ripple announced on Wednesday that it has chosen BNY Mellon to hold the U.S. dollar cash and U.S. Treasury bond reserves for its stablecoin RLUSD. The circulation of RLUSD has exceeded $500 million. As one of the largest custodian banks in the United States with approximately $52 trillion in assets under management, BNY Mellon will safely custody the reserve assets for RLUSD and assist in liquidity management. This action is intended to ensure that RLUSD holders can redeem dollars on a 1:1 basis. The redemption mechanism complies with regulatory standards similar to those of traditional money market funds. BNY Mellon established a dedicated digital asset unit in 2021 and officially started providing services to institutional-grade crypto clients in 2022.