BNY Mellon Expands Tokenized Treasury Plans as Ripple's RLUSD Gains Institutional Momentum

BNY Mellon is accelerating its digital asset strategy after revealing plans to support around-the-clock settlement for tokenized and conventional U.S. Treasuries, a move that could strengthen institutional adoption of blockchain-based financial infrastructure.

According to a Bloomberg report, the bank has already completed after-hours U.S. Treasury transactions with stablecoin issuers earlier this year. BNY Mellon also plans to launch tokenized U.S. Treasuries and begin pilot transactions on its private blockchain before the end of 2026. The financial giant expects to fully support "always-on" settlement for both traditional and tokenized Treasuries in 2027.

The announcement drew praise from Ripple executive Jack McDonald, Senior Vice President of Stablecoins, who highlighted the role of Ripple USD (RLUSD) in the evolving digital finance ecosystem. In a post on X, McDonald congratulated BNY Mellon on the milestone and said RLUSD would help drive the transition toward continuous Treasury markets and institutional digital asset infrastructure.

The update comes shortly after BNY Mellon was named the primary reserve custodian for Ripple's RLUSD stablecoin. The partnership reinforces Ripple's push into enterprise-focused digital payments while expanding BNY Mellon's presence in the rapidly growing tokenized asset market.

Issued under a New York Department of Financial Services Trust Company Charter, RLUSD is designed primarily for institutional and enterprise use rather than retail payments. Ripple says the stablecoin emphasizes regulatory compliance, transparency, and practical utility for financial institutions seeking faster and more efficient cross-border transactions.

Ripple expects RLUSD to reduce settlement times and lower transaction costs for businesses operating across multiple markets. Under the agreement, BNY Mellon will safeguard RLUSD reserves, provide transaction banking services, and deliver the infrastructure needed to connect stablecoins with traditional financial systems.

The partnership reflects the increasing interest among major financial institutions in blockchain technology, tokenized assets, and stablecoin-based settlement as they modernize global financial infrastructure and prepare for the next generation of digital finance.