Ripple (CRYPTO: XRP) has announced that the Bank of New York Mellon (NYSE:BKAG) will serve as the primary custodian for reserves backing its U.S. dollar-pegged stablecoin RLUSD.

This move marks a significant step toward boosting institutional trust in the stablecoin sector, as well as ensuring greater regulatory alignment for Ripple, which issued RLUSD in December 2024.

BNY Mellon, the oldest bank in the United States and a key service provider to institutional clients, will manage the underlying reserve assets and facilitate the liquidity processes behind RLUSD redemptions and conversions, CNBC reported on Wednesday.

The partnership comes at a time of accelerating interest in stablecoins among legacy financial institutions and large corporations.

“BNY is committed to delivering differentiated, end-to-end solutions designed to meet the needs of institutions across the digital assets ecosystem,” said Emily Portney, the bank's global head of asset servicing.

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She added that the firm is proud to support the infrastructure behind RLUSD and Ripple’s broader efforts in shaping the future of finance.

This collaboration is part of a broader industry shift often dubbed "stablecoin summer," as firms like Amazon, Walmart, Uber, and Apple are reportedly exploring the use or issuance of their own stablecoins.

Regulatory momentum is also building, with the U.S. Congress making headway on stablecoin legislation and the Trump administration rolling back prior crypto restrictions.

Ripple is currently seeking a national banking charter and a Federal Reserve master account, which would allow it to manage reserves directly with the U.S. central bank.

Known for developing cross-border payment infrastructure, Ripple has largely operated internationally and primarily serves banks and fintechs.

BNY Mellon entered the crypto space in 2021, forming a dedicated digital assets division to offer custody and asset servicing solutions for cryptocurrencies like Bitcoin.

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