Ripple expands BNY custody for XRP, RLUSD, and partners C2FO for XRP Ledger trade finance

The integration of tokenized trade finance onto the XRP Ledger is being advanced through a partnership between Ripple and working-capital platform C2FO, alongside an expanded custody arrangement with BNY.

Ripple has augmented its association with BNY to facilitate institutional safekeeping of both XRP and RLUSD, while concurrently developing faster trade finance settlement mechanisms utilizing the XRP Ledger and stablecoins through a distinct collaboration with C2FO. A notification issued on October 27 detailed that BNY now furnishes support for these digital assets via its Digital Asset Custody platform, enabling qualifying institutional clientele to manage, protect, and move them. Furthermore, the organizations are currently reviewing supplementary offerings related to stablecoin issuance, investment products that are tokenized, and trade finance, though these specific arrangements are still in a developmental phase.

On the identical date, Ripple and C2FO detailed their intentions to employ the XRP Ledger and RLUSD for financing and settlement procedures linked to vetted commercial invoices. This structure targets suppliers who presently endure payment delays of 30, 60, or 90 days, proposing a settlement timeline that could achieve fund arrival within mere seconds. This augmented accord builds upon BNY's prior function as the principal reserve custodian for Ripple's dollar-backed RLUSD stablecoin, as well as its existing custodial relationship with Ripple Prime. The bank's Digital Asset Custody platform now accommodates the holding and movement of XRP and RLUSD within its established institutional servicing framework.

Ripple President Monica Long indicated that the firm's strategic focus is shifting beyond merely releasing assets onto distributed ledger networks toward their practical application within monetary exchanges. Long stated, "We're moving past the initial issuance of assets onchain," emphasizing applications involving collateral and payments. BNY intends to offer backing for a greater array of investment products and tokenized assets issued on the XRP Ledger as institutional appetite grows. The two entities are exploring a service that would permit BNY patrons to create and redeem RLUSD directly through the bank, though a timeline for this feature's availability has not been declared. Carolyn Weinberg, BNY's chief innovation and market transformation officer, remarked that future financial infrastructure will link "payments, liquidity, collateral and securities" via both blockchain technology and conventional systems. The bank has not provided figures regarding the number of patrons currently holding XRP or RLUSD through its custody service.

The separate C2FO alliance concentrates on financing approved receivables utilizing the company's newly implemented Instant Pay service. Suppliers will maintain access to early payments through C2FO's established marketplace, while capital providers participating in the arrangement will finance transactions settled using RLUSD on the XRP Ledger.

Business entities frequently must wait several weeks after delivering services or goods before receiving remuneration. Even when a supplier secures advance payment, transfers through standard banking channels can require several days to finalize.

Ragui Selwanes, C2FO's president and chief operating officer for the Americas, explained that this collaboration aims to enhance the financial infrastructure supporting its marketplace. He characterized the suggested financing structure as a method to augment capital accessibility while maintaining current client relationships.

Ripple and BNY are investigating the utilization of tokenized trade finance assets, including receivables, to make financing avenues available to institutional investors. Their proposed work with C2FO would involve digitally representing approved payment claims and exploring how investors could back those liabilities. Under the C2FO mechanism, the original due dates and terms of the invoice would remain unaltered. Participating financing entities would supply the initial funds, while RLUSD would function as the settlement medium, allowing suppliers to receive their funds without waiting for traditional bank transfers.

Markus Infanger, RippleX Senior Vice President, observed that working capital represents an area where blockchain possesses the capability to improve existing financial services. He pointed to the XRP Ledger's swift settlement times and low transaction expenses, coupled with RLUSD's function in transferring value denominated in US dollars. The companies have not disclosed the monetary value of financing committed to Instant Pay, nor have they confirmed a successful production transaction using this new setup. C2FO is currently collecting expressions of interest via a waiting list, whereas the broader BNY trade-finance initiative is contingent upon client specifications.

These recent announcements follow several instances of institutional incorporation involving Ripple's stablecoin. On October 12, Standard Chartered introduced institutional RLUSD custody through its Dubai International Financial Centre branch, with a collateral arrangement involving LMAX Group still undergoing development. Three days later, Ripple executed a Cross River agreement to link RLUSD with banking services covering both domestic movements and international payments. As previously reported by crypto.news, that integration is engineered to connect stablecoin transactions to existing banking infrastructure via Cross River's operating system.

BNY has independently provided support for tokenized investment products. The bank continues to serve as the custodian for assets held by Aviva Investors' Sterling Liquidity Fund, which recently launched tokenized fund shares on the XRP Ledger. According to the C2FO release, Ripple's October 27 announcements place RLUSD's market capitalization at roughly $2.5 billion, with over $1 billion already issued on XRPL. The organizations assert that the ledger finalizes transactions in an approximate timeframe of three to five seconds, although the specific operational transaction volumes for the proposed invoice-financing service have not been shared.

These developments underscore a broader trend where established financial intermediaries are actively integrating decentralized ledger technology to optimize capital flows and transactional efficiencies within global commerce.

Why it matters

This development signals a deeper integration of stablecoins and ledger technology into traditional finance infrastructure. For DeFi and L2 observers, this highlights the maturation of tokenized assets moving beyond mere issuance toward real-world financial utility. The focus on settlement speed directly impacts the efficiency of capital flows within established trade finance protocols.