Blockchain solutions provider Ripple and BNY have expanded their digital asset collaboration to enhance their capabilities in digital asset custody and explore new use cases for blockchain technology, both on an institutional scale.
BNY is already the primary reserve custodian for Ripple’s stablecoin, RLUSD, and the custodian for Ripple’s multi-asset prime broker, Ripple Prime. With the expansion of their collaboration, BNY will now also support XRP, the native digital asset of XRPL, and RLUSD on its digital asset custody platform. The goal is to offer institutional clients secure digital asset custody within the governance, controls, and resiliency of BNY’s broader servicing model, as well as a seamless way to safekeep, hold, and transfer digital assets.
In the next phase, BNY plans to widen its support for tokenised assets and investment products issued on XRPL, in line with the uptake in institutional use cases on the ledger. Eventually, BNY clients will be able to mint and redeem RLUSD directly through the bank.
Additionally, both parties intend to advance tokenised trade finance on XRPL by improving investor access to the asset class and are exploring a supply chain finance initiative with global working capital platform C2FO.
Ripple president Monica Long describes the collaboration in a statement, “We are 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.”
Carolyn Weinberg, chief innovation and market transformation officer at BNY predicts, “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.”