BNY Mellon will have custody of Ripple's new stablecoin as institutional interest in crypto swells

The partnership should enhance regulatory compliance for Ripple, the issuer of ripple USD (RLUSD), and boost institutional credibility for the company as well as the fast growing stablecoin industry

Stablecoins are cryptocurrencies whose values are pegged to that of another asset, usually the dollar

CM= your favorite stocksCREATE FREE ACCOUNTJakub Porzycki | Nurphoto | Getty ImagesBank of New York Mellon will be the primary custodian for the Ripple's U

Dollar-pegged stablecoin reserves going forward, the two companies said Wednesday

The partnership should enhance regulatory compliance for Ripple, the issuer of ripple USD (RLUSD), and boost institutional credibility for the company as well as the fast growing stablecoin industry

BNY Mellon is the nation's oldest bank and primarily serves institutions and corporations

It also adds to the growing number of traditional institutions and companies showing interest in stablecoins – a shift that has quickly become known as "stablecoin summer" – as the Trump administration rolls back restrictive Biden-era crypto policies and Congress makes gress on passing stablecoin legislation

Amazon and Walmart are reportedly exploring the possibility of using or issuing their own stablecoins

Uber, Apple and Airbnb are among other big companies reported to be exploring them. "BNY is committed to dering differentiated, end-to-end solutions, designed to meet the needs of institutions across the entire digital assets ecosystem," Emily Portney, global head of asset servicing at BNY Mellon, said in a statement. "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 and are ud to be working closely with Ripple to continue pelling the future of the financial system. "Stablecoins are cryptocurrencies whose values are pegged to that of another asset, usually the dollar

They are designed to bring the stability of traditional currencies to blockchain networks (praised for the speed and efficiency they vide money transfers)

In recent weeks, Ripple also applied for a U

National banking charter and a Federal Reserve master account, which would allow the company to hold reserves directly with the central and access its payment rails

Ripple, whose founders are the creators of the XRP token, is a 13-year-old -to- payments firm that does much of its outside the U. , serving banks, payments companies and other financial institutions with a need for cross-border payments

Some analysts see even more gains aheadHow the stablecoin bill gives Treasury Secretary Bessent a new tool to fund the U