Global Bank Endorses Ripple USD as Their Digital Currency of Choice
In a significant move, AMINA Bank, a Swiss crypto-focused bank regulated by FINMA, has started offering custody and over-the-counter trading for Ripple's stablecoin, Ripple USD (RLUSD) [2][3][5]. This development marks a significant shift in the convergence of traditional banking and digital asset sectors.
RLUSD, designed to operate seamlessly across Ripple's XRP Ledger and Ethereum-compatible networks, is now integrated into Ripple Payments, a cross-border treasury platform already live in over 70 payout corridors [1][5]. This integration broadens the utility of Ripple's ecosystem and strengthens the use cases for XRP.
AMINA Bank's initiative positions RLUSD as a trusted liquidity instrument, backed 1:1 by U.S. dollars and short-term Treasuries, within a robust legal and operational framework. This move reflects the growing institutional appetite for digital assets that offer both compliance and utility [1][2][3].
Myles Harrison, chief product officer at AMINA Bank, praised Ripple's commitment to transparency and compliance. He stated, "AMINA Bank is excited to offer our client base of professional investors, institutions, and corporations access to Ripple's stablecoin ecosystem."
The partnership deepens the integration of Ripple's digital infrastructure with traditional banking. RLUSD's inclusion in AMINA's offerings signals confidence among traditional financial institutions in the stability and regulatory posture of Ripple [1][2][3].
This move by AMINA Bank also accelerates the adoption of stablecoins into traditional finance. By integrating RLUSD into its regulated platform, AMINA is setting a precedent for how other banks can safely offer digital asset services, potentially encouraging further innovation and collaboration across the banking sector [1][2].
The wider stablecoin sector has swollen to roughly $263 billion, with early adopters of RLUSD in Ripple Payments including BKK Forex and iSend. RLUSD lives natively on both the XRP Ledger and Ethereum, allowing settlement across public and permissioned rails [1][5].
Ripple is also seeking a national bank charter with the US Office of the Comptroller of the Currency, aiming to provide both state (via NYDFS) and federal oversight for RLUSD [2]. This move further emphasises Ripple's commitment to regulatory compliance and legitimacy.
In addition, Ripple has applied for a Federal Reserve master account for its Standard Custody & Trust subsidiary, with the ambition to hold RLUSD reserves directly with the Fed to "future-proof trust" in the token [4].
As stablecoins gain institutional traction, regulatory scrutiny will likely increase, requiring issuers and service providers to maintain rigorous compliance standards and transparency in reserve management. For instance, the European Union's MiCA regime, whose transaction-volume caps for non-e-money stablecoins take effect on 30 June 2024, requires issuers to demonstrate reserve integrity and governance discipline to maintain access to the bloc [6].
In summary, AMINA Bank’s support for RLUSD represents a milestone in the institutional adoption of stablecoins, providing a model for regulated integration of digital assets into traditional banking and signaling a new phase of growth and competition in the stablecoin sector [2][3][5]. This development underscores accelerating institutional demand for regulated digital cash.
Financing for Ripple's stablecoin, Ripple USD (RLUSD), expanded with AMINA Bank offering custody and over-the-counter trading, signifying business opportunities in the intersection of finance, technology, and traditional banking. The initiative by AMINA Bank, a Swiss crypto-focused bank, positions RLUSD as a promising liquidity instrument, attracting institutional interest and fostering innovation in the technology sector.
