BNY adds XRP and RLUSD custody; Ripple pilots C2FO invoice financing on XRPL

BNY now supports XRP and RLUSD on its Digital Asset Custody platform for institutional clients, Ripple said Tuesday. Separately, Ripple and working-capital firm C2FO will test running C2FO's Instant Pay flow for approved-invoice financing on the XRP Ledger, settling in RLUSD. The twin announcements come the day after Ripple's final OCC approval for its national trust bank. Reporting: The Block, crypto.news.

The BNY custody expansion

• What is live: BNY now supports XRP and RLUSD on its Digital Asset Custody platform. Eligible institutional clients can hold, safeguard, and transfer both assets.
• Prior relationship: BNY has been RLUSD's primary reserve custodian since the stablecoin's December 2024 launch, and holds a custody relationship with Ripple Prime.
• Planned next step: BNY intends to let eligible clients mint and redeem RLUSD directly through the bank, and to support further tokenized Ripple products. Neither company gave a launch date for these additions.

The C2FO / XRPL invoice-financing pilot

C2FO runs a working-capital marketplace where capital providers advance payment on approved supplier invoices, ahead of the buyer's standard payment date. The plan with Ripple is to port the settlement rail of that flow onto the XRP Ledger, using RLUSD for payment.

What the announcement states:

• Target: supply-chain receivables, approved by the buyer, where the supplier wants cash before the due date.
• Mechanism: suppliers get paid in seconds against the approved invoice. Capital providers fund the early payment. Existing invoice terms and due dates stay unchanged.
• Status: not launched. The pilot is at the exploration stage. C2FO is accepting expressions of interest. Live transaction volumes and launch dates are unconfirmed.

What the announcement does not state:

• No dollar amounts, named participating capital providers, or named corporate buyers.
• No description of how invoices are tokenized or settled on the ledger — whether as a native XRPL object, an RLUSD transfer only, or a hybrid.
• No timeline for the BNY mint/redeem services.

Numbers around RLUSD

Figures are Ripple's, as cited by The Block.

Why this matters

For BNY: adding XRP as a custody-supported asset extends the Ripple relationship beyond the stablecoin's reserves. BNY now holds the full stack — RLUSD reserves, RLUSD on the custody platform, XRP on the custody platform, and the Ripple Prime relationship. That is the broadest institutional-grade custody footprint any of the big US banks has publicly committed to for a non-Ethereum, non-Bitcoin ecosystem.

For the XRP Ledger: C2FO's existing counterparties include large corporate buyers, which gives the pilot — if it ships — a path from "the stablecoin that settles on the XRP Ledger" to a specific institutional use case running on the ledger. The current XRPL RWA footprint is a few hundred million dollars of tokenized Treasuries from issuers including Aviva (via Ripple's Sterling Liquidity Fund) and Franklin Templeton's FBEQ/FIBT structure.

For Ripple's regulatory stack: combined with the OCC's final approval of Ripple National Trust Bank announced Monday night, Ripple now has a federally supervised reserve-custody charter, an NYDFS issuance stack, a top-tier US bank in custody, and a named enterprise-trade-finance partner. The chart of regulated US-connected rails is close to complete.

What to watch

1. A C2FO launch date, participant list, or pilot size. Everything beyond "exploration" needs confirmation. Press-release trade-finance announcements have a long history of not shipping.
2. BNY's mint/redeem service date. This is the piece that would make RLUSD directly bank-redeemable through a top-tier custodian — materially different from today's reserve-only arrangement.
3. On-chain data. If the pilot ships, RLUSD transfer volumes on XRPL tagged to C2FO wallets will be the first measurable signal.
4. Peer response. JPMorgan's Kinexys and Citi Token Services are the comparable bank-run trade-finance rails. Whether BNY's XRPL path competes with those or complements them is the structural question.

Context

Ripple's Monday-Tuesday pair — final OCC approval for RNTB on Monday night, BNY custody expansion plus C2FO announcement on Tuesday — assembles the US regulated-rails stack the firm has been building publicly for over a year. The C2FO pilot is the first announcement where the ledger itself (not just RLUSD) is pitched at a specific institutional use case. Whether it leaves exploration is the next data point.

Sources:

• The Block — Ripple, BNY explore using the XRP Ledger to finance approved invoices
• crypto.news — Ripple expands BNY custody deal, brings C2FO trade finance to XRP Ledger