Ripple and BNY Target New Trade Finance Market for XRP Ledger

BNY Collaboration Targets Institutional Trade Finance

Investors could gain broader access to financing approved business invoices through an initiative disclosed on Oct. 27 by Ripple and The Bank of New York Mellon Corporation (NYSE: BNY). Their expanded digital asset collaboration includes exploring supply chain finance with C2FO, a global working capital platform.

Tokenized trade finance could broaden investor participation and simplify the management and distribution of tokenized financial claims. Implementation remains subject to institutional customer requirements.

Ripple President Monica Long described the collaboration’s intended role in connecting digital assets with institutional financial activity:

“With BNY, we’re connecting the necessary components of financial infrastructure on the XRP Ledger so institutions can move from holding digital assets to using them within capital markets and trade finance seamlessly.”

BNY Extends Custody to XRP and RLUSD

Eligible institutions can now safeguard, hold, and transfer XRP and RLUSD through BNY’s Digital Asset Custody platform. The bank operates the service within the governance, controls, and operational safeguards of its broader asset servicing business. The custody expansion builds on BNY’s appointment as primary custodian of RLUSD reserves in July 2025, alongside transaction banking services supporting the stablecoin.

Ripple USD (RLUSD), Ripple’s dollar-backed stablecoin, has reached $2.58 billion in market capitalization. The reserve custody arrangement concerns the assets backing RLUSD, while the expanded digital asset service safeguards institutional holders’ tokens.

The relationship also encompasses Ripple Prime, Ripple’s institutional prime brokerage providing trading, financing, and clearing services. That business became an early adopter of BNY’s tokenized deposit capabilities in January. BNY reported $63.4 trillion in assets under custody and/or administration as of Sept. 30, alongside $2.2 trillion under management.

Direct RLUSD Services and Tokenized Products Are Planned

BNY intends to support more tokenized assets and investment products issued on the XRP Ledger and enable direct RLUSD minting and redemption through the bank. Those proposed services target payments, settlement, and collateral workflows. Ripple’s broader institutional XRP Ledger development programs also target credit infrastructure and regulated financial applications.

Carolyn Weinberg, BNY’s chief innovation and market transformation officer, outlined the bank’s broader objective for the partnership:

“In collaboration with Ripple, we are working to shape a more continuous, efficient and resilient financial system, paving the way for broader institutional adoption.”

Ripple’s related trade finance work includes a Singapore initiative with Unloq, a supply chain finance technology provider. Announced in March, that pilot combines financing workflows with conditional RLUSD payments.