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 has selected Bank of New York Mellon as the primary custodian for the reserves supporting its U.S. dollar-pegged stablecoin, RLUSD. Both companies announced on July 9 the ongoing integration of traditional finance with digital assets to bring regulatory compliance and institutional legitimacy to them.