Ripple RLUSD Stablecoin In Focus As BNY Mellon Eyes 24/7 Tokenized US Treasuries Settlement

Ripple’s RLUSD stablecoin has received a new boost in interest thanks to BNY Mellon’s plans to create a 24/7 settlement system for the U.S. Treasury market. The banking giant wants to enable round-the-clock traditional and tokenized Treasury transactions over the next few years.

RLUSD Takes Spotlight Amid BNY Mellon’s New US Treasury Initiative

A client letter published on Wednesday states that BNY Mellon has already executed after-hours Treasury transactions with stablecoin issuers earlier this year. The bank is also set to release tokenized U.S. Treasuries and start conducting pilot transactions on its private blockchain prior to the end of 2026.

It aims to be fully supporting “always-on” settlement of conventional and tokenized Treasuries in 2027, per a Bloomberg report.

Ripple executive Jack McDonald enthusiastically welcomed the news and put the RLUSD stablecoin in spotlight. McDonald, Senior Vice President of Stablecoins at Ripple, shared on X: “Congratulations to BNY on this milestone. Excited to be partnering together as $RLUSD helps support the evolution toward always-on Treasury markets and institutional digital asset infrastructure.”

About Ripple & BNY Mellon’s Partnership

The update is made just weeks after BNY Mellon becoming the main reserve custodian for Ripple USD (RLUSD). The collaboration brings to its institutional strategy a new asset class in the form of a stablecoin, and further enriches BNY’s leadership position in digital asset infrastructure.

Ripple has issued RLUSD stablecoin under a New York Department of Financial Services Trust Company Charter. Ripple created the stablecoin for enterprise rather than retail payments. RLUSD focuses on regulatory requirements, transparency and the utility to financial institutions, the company says.

Ripple also places RLUSD as a means to quicker and more effective cross-border payments. The stablecoin’s purpose is to speed up settlement transactions and decrease transaction costs for enterprise users that transact between different markets.

BNY Mellon will ensure the protection of Ripple’s RLUSD’s reserves and offer transaction banking solutions for the stablecoin’s operations, under the agreement. The bank will also provide the infrastructure to link stablecoins with conventional financial systems.

The deal follows as BNY Mellon continues to grow its digital asset arm as financial institutions increasingly look into tokenized assets, blockchain settlement, and day-to-day operations.