Ripple and BNY expand digital asset custody, target tokenized trade finance

Traders Union
All News
Crypto
Ripple and BNY expand custody

Highlights

BNY expands its Digital Asset Custody platform to support XRP and RLUSD, integrating Ripple's products and the XRP Ledger for institutional clients.
Ripple and BNY plan to let clients mint and redeem RLUSD directly through BNY, aiming to streamline payments, settlement, and collateral workflows.
Ripple states RLUSD has reached about $2.5 billion in market capitalization, while the XRP Ledger has processed over 4.6 billion transactions with three to five second settlement times.

Custody expansion and XRPL plans

As reported by Ripple, the expanded collaboration combines Ripple's digital asset products and the XRP Ledger with BNY's custody and servicing infrastructure for institutional clients. BNY already serves as primary reserve custodian for Ripple's stablecoin RLUSD and has a custody relationship with Ripple Prime.

BNY now supports XRP, the native token of the XRP Ledger, and RLUSD on its Digital Asset Custody platform. The bank says the platform is built to let eligible institutional clients safekeep, hold and transfer digital assets within its wider governance, control and resiliency framework.

Ripple President Monica Long says the market is moving beyond simply issuing assets onchain and toward making tokenized assets usable for payments and collateral across financial markets. BNY Chief Innovation and Market Transformation Officer Carolyn Weinberg says future market infrastructure will depend on links between traditional financial systems and always-on blockchain networks.

Trade finance use cases and market implications

BNY says it intends to expand support for tokenized assets and investment products issued on the XRPL as institutional use cases on the ledger develop further. The companies also plan to let BNY clients mint and redeem RLUSD directly through BNY, with the stated aim of improving payments, settlement and collateral workflows over time.

Ripple and BNY also plan to advance tokenized trade finance on the XRPL, subject to client requirements. As an initial step, they are exploring a supply chain finance initiative with C2FO focused on widening investor access to receivables as an asset class while simplifying how those assets are managed and distributed.

C2FO President and COO Americas Ragui Selwanes says the effort is intended to make the financial infrastructure behind its marketplace more efficient and connected. Ripple says RLUSD has grown to about $2.5 billion in market capitalization, while the XRPL has processed more than 4.6 billion transactions since launch, with settlement times of about three to five seconds.

In our earlier article on the Financial Stability Board’s guidance for agentic AI in financial firms, we examined the push for stronger human oversight as more autonomous systems move closer to core banking workflows. The recommendations focus on risk-based triggers for when AI agents should require human approval, reflecting growing concerns around operational resilience and cyber risk as institutions scale new technology.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.