Ripple’s RLUSD stablecoin is getting fresh attention after BNY Mellon, the world’s largest custodian bank, announced plans to build a round-the-clock settlement system for the U.S. Treasury market. The move signals growing institutional appetite for tokenized assets and could accelerate adoption of stablecoins beyond crypto trading.
BNY Mellon said it aims to enable 24/7 settlement for both traditional and tokenized Treasury transactions over the next few years. The bank, which holds more than $2 trillion in assets under custody, is betting that continuous settlement will reduce risk and unlock new efficiencies in a market that currently operates only during business hours.
Why BNY Mellon’s move matters for stablecoins
Stablecoins like RLUSD are designed to maintain a 1:1 peg with the U.S. dollar, making them a natural bridge between traditional finance and blockchain-based settlement. Ripple’s RLUSD, issued on the XRP Ledger, is one of several dollar-pegged tokens vying for institutional use. BNY Mellon’s plan creates a concrete use case: if Treasuries can be tokenized and settled 24/7, stablecoins become the obvious medium for instant payments and collateral transfers.
The bank hasn’t specified which stablecoins it will support, but the announcement alone has refocused attention on RLUSD. Ripple has been positioning the token for enterprise payments, and a tie-up with a major custodian would give it a foothold in the $28 trillion U.S. Treasury market.
What the 24/7 settlement system would look like
BNY Mellon’s proposed system would allow market participants to buy, sell, and settle Treasury securities at any hour, not just during the Federal Reserve’s Fedwire window. That means institutional investors could manage collateral and liquidity in real time, even on weekends or holidays. The bank plans to use blockchain technology to tokenize Treasuries, creating digital representations that can be transferred instantly.
This is a significant shift for a market that has relied on batch settlement and limited operating hours for decades. If successful, it could reduce counterparty risk and free up capital that is currently tied up in overnight settlement gaps.
Ripple’s RLUSD and the race for institutional stablecoins
Ripple launched RLUSD in late 2024, aiming it squarely at the institutional payments market. The stablecoin is issued on the XRP Ledger and is designed to comply with U.S. regulations. Unlike some competitors, Ripple has emphasized transparency and regulatory compliance, which could be a selling point for risk-averse institutions like BNY Mellon.
BNY Mellon’s 24/7 settlement plan is still in its early stages, and the bank has not announced a timeline or specific partners. But the direction is clear: traditional finance is moving toward tokenized assets and continuous settlement. For Ripple, that means RLUSD could become a key piece of infrastructure if it gets integrated into the bank’s system.
The stablecoin market is crowded, with players like USDC and USDT already dominant in crypto trading. But the institutional use case is different. RLUSD’s focus on compliance and its connection to Ripple’s payment network could give it an edge in the race to serve banks and asset managers.
For now, the boost is mostly about attention and positioning. BNY Mellon’s announcement validates the idea that stablecoins have a role beyond crypto exchanges. Whether RLUSD can capitalize on that remains an open question.
