The partnership should enhance regulatory compliance for Ripple, the issuer of ripple USD (RLUSD), and boost institutional credibility for the company as well as the fast-growing stablecoin industry.

The move follows Ripple's application for a national banking license and a Federal Reserve master account to further integrate with the U.S. financial system.

Ripple CEO urges U.S. lawmakers to clarify XRP regulation as BNY Mellon joins Ripple to custody RLUSD stablecoin reserves for institutional clients.