Ripple and BNY Expand Custody and Tokenized Trade Finance

Ripple has expanded its strategic partnership with BNY to support institutional custody of XRP and its dollar-backed stablecoin, RLUSD, alongside a separate collaboration with working-capital platform C2FO to advance tokenized trade finance on the XRP Ledger.

According to Cryptonews, BNY now supports both digital assets through its Digital Asset Custody platform, allowing eligible institutional clients to hold, safeguard, and transfer them within the bank's servicing infrastructure. The expanded agreement builds upon BNY’s existing role as primary reserve custodian for RLUSD and its custody relationship with Ripple Prime.

Tokenized Trade Finance and Settlement

In a separate arrangement, Ripple and C2FO outlined plans to utilize the XRP Ledger and RLUSD for financing and settlement tied to approved business invoices. The proposed settlement service targets suppliers that typically wait 30, 60, or 90 days for payment, aiming to deliver funds through C2FO's Instant Pay service within seconds.

While participating financing providers supply early funding, RLUSD serves as the settlement asset. The companies have not disclosed the value of financing committed to Instant Pay or confirmed a completed production transaction using the arrangement.

Future Infrastructure Plans

Ripple and BNY are examining additional services involving direct RLUSD minting and redemption through the bank, tokenized investment products, and trade finance assets such as receivables. BNY intends to provide support for more tokenized assets and investment products issued on the XRP Ledger as institutional demand develops.

Key facts

• BNY Digital Asset Custody platform now supports XRP and RLUSD for institutional clients.
• C2FO plans to use the XRP Ledger and RLUSD to settle financing against approved invoices.
• RLUSD market capitalization stands at approximately $2.5 billion, with over $1 billion issued on the XRP Ledger.
• C2FO has historically facilitated more than $250 billion in working capital through accelerated invoice payments.