Ripple and BNY explore tokenized trade finance on XRP Ledger

Ripple and BNY are expanding their digital asset collaboration to include custody support for XRP and RLUSD, direct stablecoin minting and redemption for BNY clients, and potential tokenized trade finance applications on the XRP Ledger, according to a Tuesday statement.

BNY has added XRP, the native asset of XRPL, and Ripple’s RLUSD stablecoin to its Digital Asset Custody platform, extending a relationship that already includes custody of RLUSD’s reserves and a custody arrangement with Ripple Prime.

The companies plan to explore additional institutional uses for XRPL, including tokenized assets and investment products, as well as blockchain-based payment, settlement and collateral workflows. BNY intends to work with Ripple to let its clients mint and redeem RLUSD directly through the bank.

Ripple and BNY are also exploring tokenized trade finance, which uses blockchain to represent assets such as trade receivables digitally. Ripple President Monica Long said financial institutions are increasingly focused on using tokenized assets for payments and collateral, rather than simply issuing them on blockchain networks.

Their first potential trade finance initiative involves C2FO, a global working-capital platform, and would focus on expanding investor access to approved receivables.