BNY Mellon Partners with Ripple Prime to Revolutionize Tokenized Deposits

• Ripple Prime leverages BNY Mellon’s tokenized deposits for instant transactions.
• Ripple’s 2026 vision includes major partnerships and cross-border payment growth.
• BNY Mellon’s innovation tackles settlement risk with blockchain tokenized deposits.

Ripple Prime, a significant player in the blockchain space, has been selected as one of the first major clients to adopt BNY Mellon’s newly developed tokenized deposit technology. This collaboration marks a notable step forward in the use of blockchain technology in traditional banking.

The New York-based banking giant unveiled its innovative approach earlier today, highlighting the benefits of tokenizing regular bank deposits.

Addressing Settlement Risks with Blockchain

Traditional banking systems, which operate on scheduled business hours, face limitations when it comes to facilitating real-time transactions. Crypto markets, however, operate continuously, leading to challenges such as settlement risk. This refers to the potential difficulty of moving large sums of money to cover crypto trades when banks are closed, particularly during weekends and holidays.

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BNY Mellon’s new technology addresses this issue by creating blockchain-based tokens that represent a direct claim on the bank’s cash, enabling seamless 24/7 transactions.

Ripple Prime, the institutional arm of Ripple, is set to leverage this groundbreaking technology, allowing it to manage collateral and margin workflows with greater ease. Instead of relying on the traditional banking infrastructure, Ripple Prime can now transfer tokenized deposits instantly, enhancing operational efficiency.

This functionality is particularly useful for high-volume, time-sensitive transactions where swift access to liquidity is crucial.

BNY Mellon’s partnership with Ripple Prime builds on their existing relationship, which includes the bank acting as the custodian for the reserves backing Ripple’s RLUSD stablecoin. Ripple Prime’s adoption of tokenized deposits reinforces its position as a trusted player within institutional financial services, alongside other prominent firms like Citadel Securities.

This move further solidifies Ripple’s standing within the industry, opening doors to new opportunities for leveraging blockchain technology in traditional finance.

Ripple CEO Teases Major Plans for 2026

Ripple CEO Brad Garlinghouse recently shared his vision for 2026, highlighting ambitious plans that could reshape the crypto sector. He expressed strong confidence in Ripple’s future, revealing upcoming strategic partnerships and acquisitions. These moves come after the acquisitions of Ripple Prime and GTreasury in 2025 positioning the company for significant growth in 2026.

Garlinghouse emphasized that Ripple’s focus on cross-border payments will continue to expand, driving innovation in international financial transactions.

A Shift Toward Instant and Programmable Transactions

BNY Mellon’s new tokenized deposit solution offers more than just a faster method for transferring funds. It introduces the concept of programmable cash, which can be automatically settled based on predefined parameters. This could significantly reduce operational bottlenecks in financial markets and create new opportunities for institutions to handle their liquidity needs more efficiently.

The ability to program these tokens for specific uses, such as collateral for trades, represents a potential game-changer for institutions with global operations and 24/7 transaction requirements.

The rise of blockchain in traditional banking is reshaping the landscape, as firms like BNY Mellon and Ripple Prime seek to combine the reliability of traditional banking with the speed and flexibility of blockchain technology.

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