Key Takeaways:
BNY Mellon is pushing the US Treasury market toward round-the-clock settlement, a shift that places Ripple's RLUSD stablecoin at the center of institutional digital asset infrastructure.
BNY Mellon plans to support always-on settlement for both tokenized and conventional US Treasuries by 2027, according to a client letter published Wednesday. The bank has already executed after-hours Treasury transactions with stablecoin issuers earlier this year and will release tokenized US Treasuries on its private blockchain before the end of 2026.
"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," Jack McDonald, Senior Vice President of Stablecoins at Ripple, said on X.
The announcement comes weeks after BNY Mellon became the main reserve custodian for Ripple USD, the stablecoin issued under a New York Department of Financial Services Trust Company Charter. Ripple designed RLUSD for enterprise payments rather than retail use, focusing on regulatory compliance and faster cross-border settlement. BNY Mellon will safeguard RLUSD's reserves and provide transaction banking services that bridge the stablecoin with traditional financial rails.
The move signals deepening institutional trust in blockchain-based settlement infrastructure. BNY Mellon's endorsement of tokenized Treasuries and its partnership with a regulated stablecoin issuer could accelerate real-world asset tokenization across traditional finance. BlackRock has also filed for two new tokenized funds with the US Securities and Exchange Commission on Ethereum, underscoring the broader push by major asset managers into on-chain capital markets.
For Ripple, the BNY Mellon partnership provides a direct channel into the $28 trillion US Treasury market, where 24/7 settlement could reduce counterparty risk and free up collateral that is currently locked in overnight processing cycles. The bank aims to fully support always-on settlement of conventional and tokenized Treasuries in 2027, with pilot transactions on its private blockchain expected before the end of 2026.
This article is for informational purposes only and does not constitute investment advice.
