XRP saw a lift this week after Ripple confirmed that BNY Mellon will serve as the custodian for its upcoming stablecoin. The announcement came during a CNBC Crypto World interview with Ripple’s Head of Product, David Schwartz, who laid out the company’s plans and what this move means for the ecosystem. For XRP, the market response was immediate. For Ripple, it marks another step toward bridging crypto and traditional finance.
There’s no question BNY Mellon brings weight to the table. As the oldest U.S. bank and one of the biggest custodians globally, it’s a name that institutions recognize and trust. Partnering with BNY Mellon isn’t just a technical choice; it’s a clear statement that Ripple wants its stablecoin to be taken seriously by traditional financial players.
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According to Schwartz, the stablecoin will be fully backed by U.S. dollars and short-term treasuries, with regular audits to keep things transparent. That formula sounds familiar, but Ripple is aiming to stand out by tapping into its network of global partners, especially those already using its payments infrastructure.
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XRP’s price ticked up following the news. That reaction might seem like a stretch since the stablecoin is separate from XRP, but the two are often viewed as reflections of Ripple’s overall momentum. Whenever Ripple makes a big move, XRP tends to follow.
The stablecoin is expected to complement XRP rather than compete with it. Schwartz mentioned that XRP will continue to anchor Ripple’s On-Demand Liquidity product, while the stablecoin opens up new ways to handle settlement and corporate treasury functions. It could also help smooth out situations where clients want less exposure to price swings but still want the speed and flexibility of blockchain payments.
Ripple entering the stablecoin game is already newsworthy, but doing it with a legacy player like BNY Mellon changes the dynamic. Stablecoin projects often face questions about reserves, trust, and compliance. Ripple is trying to get ahead of that by bringing in one of the most established names in custody to manage the backing assets.
This move also reflects a broader trend: stablecoins are no longer just for crypto-native use cases. They’re making their way into finance departments, cross-border payments, and even government conversations. Ripple sees an opportunity to step into that space with a product that plays by the rules but still offers speed and efficiency.
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Ripple aims to roll out the stablecoin later this year, assuming final testing and approvals go smoothly. There may be more announcements coming too, as the company hinted at further partnerships beyond BNY Mellon. Schwartz made it clear that the goal isn’t to fight for dominance but to offer a reliable tool for enterprise-grade use.
For XRP watchers, this is another sign that Ripple is expanding its reach. Whether or not the stablecoin grabs market share quickly, the strategy behind it shows Ripple is still very much in the game and looking to play on a bigger field.
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The post XRP Climbs as Ripple Taps BNY Mellon to Custody Its New Stablecoin appeared first on 99Bitcoins.
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