Ripple and BNY are expanding their digital asset collaboration to include custody support for XRP and the RLUSD stablecoin, direct stablecoin minting and redemption for BNY clients, and potential tokenized trade finance applications on the XRP Ledger (XRPL), according to a Tuesday statement.
As part of the extended relationship, BNY has added XRP and RLUSD to its Digital Asset Custody platform. This builds upon an existing relationship that already included custody of RLUSD’s reserves and a custody arrangement involving Ripple Prime.
The two companies plan to explore additional institutional uses for XRPL, such as tokenized assets and investment products, alongside blockchain-based payment, settlement, and collateral workflows. Furthermore, BNY intends to work with Ripple to allow its clients to mint and redeem RLUSD directly through the bank.
Ripple and BNY are also examining tokenized trade finance, a method that uses blockchain technology to digitally represent assets such as trade receivables. Ripple President Monica Long noted that financial institutions are placing a growing focus on utilizing tokenized assets for payments and collateral rather than merely issuing them on blockchain networks.
The initial potential trade finance initiative between the companies involves C2FO, a global working-capital platform, and is designed to focus on expanding investor access to approved receivables.
