Bank of New York Mellon will be the primary custodian for Ripple's U.S. dollar-pegged stablecoin reserves, strengthening regulatory compliance and institutional credibility for Ripple.
Traditional institutions are increasingly showing interest in stablecoins, with BNY Mellon joining the trend, reflecting a broader shift in the industry known as 'stablecoin summer'.
Stablecoins are cryptocurrency assets pegged to traditional currencies like the dollar, providing stability to blockchain networks and enabling efficient money transfers.
Ripple has been expanding its presence in the industry by applying for a U.S. national banking charter and a Federal Reserve master account, while BNY Mellon entered the crypto space in 2021 by launching a digital assets unit.