Ripple and BNY Expand Partnership to Tokenize Trade Finance on XRP Ledger
Ripple has expanded its custody agreement with BNY Mellon and partnered with supply chain fintech C2FO to develop tokenized trade finance settlement on the XRP Ledger using stablecoins. The collaboration aims to accelerate trade settlement and improve liquidity for global finance infrastructure.
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Expanded Custody and New Trade Finance Partnership
Ripple has broadened its existing custody arrangement with BNY Mellon to include XRP and RLUSD, Ripple's native USD stablecoin. Simultaneously, Ripple announced a partnership with C2FO, a supply chain finance platform, to develop faster trade settlement mechanisms using the XRP Ledger and tokenized assets. The collaboration leverages both organizations' infrastructure to streamline working capital flows for enterprises.
How Tokenization Changes Trade Settlement
Traditional trade finance relies on paper-based instruments and multiple intermediaries, creating friction and settlement delays measured in days. By issuing trade instruments as tokens on the XRP Ledger alongside stablecoins, settlement can occur in real time or near-real time with reduced counterparty risk. BNY's custody capabilities ensure institutional-grade safeguarding of the underlying assets, while C2FO's existing network of buyers and suppliers provides immediate liquidity channels.
Strategic Positioning in Global Finance
The partnership signals Ripple's continued focus on institutional use cases rather than retail speculation. BNY Mellon, one of the world's largest custodians by assets under administration, lending credibility to blockchain-based settlement infrastructure. The expansion of custody to include both XRP and RLUSD removes a significant friction point for institutions looking to transact on the XRP Ledger without relying on crypto-native venues.
Why It Matters
For Traders
Institutional custody backing from BNY lowers counterparty risk for traders using XRP Ledger-issued instruments, potentially broadening the market for tokenized trade assets.
For Investors
Real-time trade settlement infrastructure, if adopted at scale, reduces the friction that has historically kept enterprises off-chain and may accelerate institutional XRP adoption.
For Builders
The addition of BNY custody and C2FO integration establishes a credible playbook for dApps seeking enterprise partnerships; custody and liquidity channels are prerequisite to institutional deployment.
This article is for information only and is not financial advice. Read the full disclaimer.
