defi ·
XRP Ledger, BNY expand partnership, add XRP and RLUSD custody for trade finance
The XRP Ledger (XRPL) has received a significant enhancement through the increased collaboration between Ripple and the major financial institution, BNY.
This expanded partnership enables the integration of institutional custody support for XRP and RLUSD, alongside developments in tokenized trade finance, onto the XRPL.
BNY is now providing support for both XRP and RLUSD within its Digital Asset Custody platform. This infrastructure allows qualified institutional clients to securely manage, safeguard, and transfer these two digital assets.
Furthermore, Ripple and BNY intend to collaborate on identifying novel applications for tokenized financial instruments within the XRP Ledger, focusing specifically on trade finance, payments, and collateral management.
Ripple's President, Monica Long, stated that the focus has shifted beyond merely issuing tokenized assets; rather, the objective is making them functional within established financial markets.
A central component of this partnership expansion involves the plan to introduce trade finance assets onto the XRP Ledger, with Ripple and BNY examining the tokenization of conventional financial instruments, such as trade receivables.
Additionally, Ripple and C2FO have announced plans to integrate C2FO Instant Pay financing and settlement onto the XRP Ledger, utilizing RLUSD for settlement. This feature would permit suppliers to receive payments in seconds, bypassing standard bank transfer delays.
This latest development builds upon prior agreements; in July 2025, Ripple had declared that BNY would serve as the main reserve custodian for RLUSD, followed by an extension to include custody for Ripple Prime.
In this new arrangement, BNY will also support a broader range of tokenized assets and investment products on the XRPL, allowing BNY clients to mint and redeem RLUSD directly via the bank, potentially offering a new access method for institutional clients.
These developments underscore a broader trend where established market participants are integrating blockchain technology and digital assets into traditional financial infrastructure.
