Bank of New York Mellon Selected as Primary Custodian of Ripple USD Reserves

By Adriano Marchese

Bank of New York Mellon has been selected to be the primary custodian of Ripple USD reserves.

Ripple, a San Francisco-based digital asset-infrastructure company, said Wednesday that it has selected the New York financial-services firm to serve as the primary reserve custodian of RLUSD, a dollar-backed stablecoin that Ripple manages.

Stablecoins are typically pegged to a stable currency and store reserves in order to keep a one-to-one exchange ratio in place. RLUSD is designed for enterprise utility, particularly in improving the speed, cost and efficiency of cross-border payments, unlike traditional stablecoins that are more geared toward retail users, Ripple said.

Write to Adriano Marchese at adriano.marchese@wsj.com