Quick overview
- Bank of America continues its partnership with Ripple, emphasizing institutional trust in blockchain for liquidity and cross-border settlements.
- The company is exploring stablecoins backed by short-term Treasury securities and US dollars, although this initiative is currently on hold pending regulatory guidance from the GENIUS Act.
- The RLUSD stablecoin has seen over 30% growth and more than $500 million in circulation, benefiting from its compatibility with Ethereum and XRP Ledger.
- BNY Mellon’s custodianship enhances RLUSD’s attractiveness to traditional financial institutions by ensuring compliance with US financial standards.
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XRP/USD
Bank of America’s ongoing partnership with Ripple, which started in 2019, shows growing institutional trust in blockchain technology for liquidity solutions and cross-border settlements. Brian Moynihan, the CEO of Bank of America, confirmed the company’s continued investigation into stablecoins backed by short-term Treasury securities and US dollars.
This initiative is currently on hold while more precise regulatory guidance is developed because of the recently passed GENIUS Act.
The Act provides a comprehensive framework for stablecoin regulation in the US, encouraging financial institutions to handle compliant digital assets with greater confidence.
Thanks to their longstanding partnership since 2019, Bank of America is well-positioned to implement RLUSD in future digital dollar strategies. This collaboration includes using Ripple’s technology for cross-border settlements and liquidity management.
The RLUSD stablecoin from Ripple has increased by over 30%, with more than $500 million in circulation, demonstrating significant growth.
This rise is primarily driven by its compatibility with the Ethereum blockchain and the XRP Ledger, as well as its strict regulatory compliance, closely overseen by the New York Department of Financial Services.
Institutional users benefit from the enhanced flexibility and security of this dual-chain operability, meeting rigorous US financial standards. BNY Mellon’s role as custodian further boosts RLUSD’s appeal to traditional financial institutions seeking reliable digital asset solutions.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.
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