XRP Surges To Month High After Ripple Taps BNY Mellon For RLUSD Custody

Ripple’s native token XRP (XRP) surged in pre-market U.S. hours after the company announced that the Bank of New York Mellon (BK) would be the primary custodian for its U.S. dollar-pegged stablecoin RLUSD.

XRP’s price had gained more than 4% in the past 24 hours, hitting a more than a month-high. This brings the cryptocurrency’s gains over the last seven days to more than 10%. However, its current price of $2.4 is still 30% below its all-time high of $3.40, seen seven years ago. 

On Stocktwits, retail sentiment around XRP’s token moved higher but remained in ‘bullish’ territory as compared to a day ago amid ‘high’ levels of chatter.

Meanwhile, BNY Mellon’s stock edged 0.3% higher following the XRP news. 

The news comes just a week after Ripple reportedly applied for a national banking license with the U.S. Office of the Comptroller of the Currency. If approved, the license would subject Ripple to direct federal oversight, enabling it to expand its services. 

Ripple said BNY Mellon will not only serve as the primary custodian of RLUSD but will also provide transaction banking services to support its operations.

“BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure, making them the ideal partner for Ripple and RLUSD,” said SVP of Stablecoins at Ripple, Jack McDonald.

Ripple also reiterated that its stablecoin is not geared towards retail users, but meant for enterprise utility with a focus on improving the speed, cost, and efficiency of cross-border payments, which is also largely the underlying mission of the organization. 

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