Ripple has announced a major collaboration with BNY Mellon to manage the reserves of its burgeoning RLUSD stablecoin, which has now exceeded $500 million. This partnership marks a significant milestone in Ripple’s strategy for cryptocurrency payments and stablecoins, fueling substantial discourse within financial circles. According to Hunter Horsley, CEO of Bitwise, Ripple could soon be perceived as an “XRP treasury company,” which has provoked varied responses both in support and skepticism of the company’s daring approach.
What Does the Ripple and BNY Mellon Deal Entail?
Announced on July 9, 2025, the deal involves transferring RLUSD reserves, backed by cash and U.S. Treasury bonds, to BNY Mellon’s extensive custody network globally. This strategic move aims to enhance trust among institutional clients by having reserve assets held by a globally recognized financial institution. Introduced in late 2024, RLUSD quickly climbed the ranks of USD-pegged stablecoins, reaching a daily trading volume of about $26 million within a few months.
How is Ripple’s Leadership Shaping the Crypto Landscape?
Operating RLUSD on the XRP Ledger and the Ethereum blockchain helps to significantly reduce costs in cross-border transactions, as emphasized by Ripple’s leadership. Ripple is also pursuing a national bank license from the U.S. Office of the Comptroller of the Currency, which would lead to RLUSD being directly regulated under banking laws if granted. The involvement of a renowned financial institution like BNY Mellon could hasten the bridge between cryptocurrency and traditional sectors, as several market experts suggest.
Hunter Horsley, while discussing on Twitter, remarked, “Is Ripple evolving into an XRP treasury company?” sparking intense debate online. Speaking later to CNBC, he predicted a pivotal year ahead for the cryptocurrency market in 2025, spurred by favorable changes in U.S. legislative and regulatory environments. Horsley foresees major cryptocurrencies becoming standard elements in both corporate and exchange operations.
In the past, Horsley objected to proposals by then-President Donald Trump to include cryptocurrencies like Ethereum, XRP, Solana, and Cardano in the national crypto reserve, advocating instead for a Bitcoin-only reserve. His latest commentary suggests that the Ripple and BNY Mellon partnership might transform the dynamics between decentralized finance and established Wall Street institutions.
Concrete takeaways from the Ripple-BNY Mellon partnership include:
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Enhanced credibility among institutional clients through the custodial management by BNY Mellon.
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Potential acceleration of regulatory recognition for Ripple and its stablecoin, RLUSD.
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An impending shift in power dynamics between traditional finance and the cryptocurrency sectors.
Ripple’s ambitious partnership with BNY Mellon signifies more than just a custodial agreement; it’s a strategic move that could redefine its position in the financial world. As Ripple navigates not only the technological but also the regulatory landscapes, the potential impacts of this partnership will likely unfold in the coming months, potentially leading to broader acceptance and integration of cryptocurrency into mainstream financial services.
