Ripple selects BNY as primary custodian for RLUSD reserves

SAN FRANCISCO - Ripple has appointed The Bank of New York (NYSE:BK), a financial powerhouse currently trading near its 52-week high with an impressive 57.9% return over the past year, as the primary custodian for its Ripple USD (RLUSD) reserves, according to a press release statement issued Wednesday.

RLUSD is a stablecoin issued under a New York Department of Financial Services Trust Company Charter, designed specifically for enterprise-level financial transactions with a focus on cross-border payments.

As primary custodian, BNY will leverage its technology infrastructure and expertise to support RLUSD operations while providing transaction banking services. The bank will facilitate the movement of reserve assets and cash to support conversions of the stablecoin.

"Ripple USD addresses a critical gap in the market as a stablecoin developed for enterprise-grade financial use cases, designed to meet the rigorous standards of leading financial institutions," said Jack McDonald, SVP of Stablecoins at Ripple.

Emily Portney, Global Head of Asset Servicing at BNY, stated: "As primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions."

BNY, which oversees $53.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management as of March 31, 2025, has previous experience providing services for stablecoin infrastructure. The bank’s strong financial position is reflected in its consistent dividend payments, maintained for 55 consecutive years with a current yield of 2.03%. According to InvestingPro, which offers comprehensive analysis of 1,400+ stocks including BNY, the company maintains a GOOD financial health score and is currently trading at attractive valuations relative to its near-term earnings growth potential.

Ripple describes itself as a provider of digital asset infrastructure for financial institutions, with solutions that leverage the XRP Ledger and its native digital asset, XRP. For investors interested in detailed financial analysis and more exclusive insights about BNY, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Bank of New York announced its intention to increase its quarterly cash dividend by 13%, raising it from $0.47 to $0.53 per share, subject to board approval. This decision follows the Federal Reserve’s stress test results, which confirmed that the company’s Stress Capital Buffer requirement will remain at the regulatory minimum of 2.5%. Additionally, BNY has been in discussions with Northern Trust (NASDAQ:NTRS) regarding a potential merger, although Northern Trust has expressed its commitment to remaining independent. Analysts from JPMorgan and RBC Capital Markets have noted the strategic benefits such a merger could bring, particularly in enhancing BNY’s wealth management business. Meanwhile, BNY has announced leadership changes, with CEO Robin Vince being elected as chairman, effective September 1, 2025, and Joe Echevarria transitioning to the role of lead independent director. These developments are part of BNY’s ongoing transformation efforts in the financial services sector. The company continues to oversee $53.1 trillion in assets under custody and $2.0 trillion in assets under management.

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