BNY expanded its partnership with Ripple on October 27, adding XRP and RLUSD to its Digital Asset Custody platform. The bank, which oversees approximately $63.4 trillion in assets under custody or administration, announced the strategic collaboration to integrate cryptocurrency custody into traditional financial markets. The expansion reflects growing institutional infrastructure for digital assets, though the announcement did not confirm whether institutions will purchase additional XRP or simply transfer existing holdings to BNY's custody services.
BNY Custody Expansion Does Not Confirm New XRP Purchases
BNY's decision to offer institutional custody for XRP represents infrastructure expansion rather than confirmed demand. The bank's existing digital asset infrastructure allows institutions to safeguard XRP within an established financial servicing framework. Transferring previously purchased tokens from another custodian to BNY does not create additional market demand. New demand would require institutions to increase their XRP holdings rather than simply change where those assets are stored.
BNY's $63.4 trillion figure represents assets held or administered across its broader financial business, not money available for XRP investment. The bank already provides administrative and shareholder services for the Bitwise XRP ETF, while Coinbase Custody safeguards the fund's underlying XRP.
XRP ETFs Record $10.42 Million Withdrawals on November 9
US spot XRP ETFs held approximately $1.24 billion in combined net assets as of November 9, according to SoSoValue-based data. Cumulative net inflows approached $1.8 billion. The funds recorded approximately $10.42 million in withdrawals on November 9, with Bitwise responsible for roughly $9.4 million. The reversal follows earlier ETF inflow weakness, showing that improved institutional infrastructure has not consistently translated into fresh investment.
ETF flows measure only one channel of demand. Institutions can hold XRP directly, through private arrangements or with specialized custodians without appearing in exchange-traded fund statistics.
Ripple and BNY Explore RLUSD Minting and Tokenized Finance Services
Ripple and BNY are exploring direct RLUSD minting and redemption, broader tokenized asset custody, and supply-chain financing through C2FO. These planned services could increase activity on the XRP Ledger, but they do not necessarily require equivalent XRP purchases. Ripple's expanding RLUSD ecosystem supports dollar-denominated settlement, while XRP remains the network's native asset for transaction fees, reserves and certain liquidity functions.
Institutional tokenized fund activity can expand without institutions purchasing XRP equal to the value of the assets represented onchain. The distinction helps explain why XRP previously declined despite Ripple's banking expansion.
FAQ
What did BNY announce on October 27 regarding XRP?
BNY expanded its partnership with Ripple on October 27, adding XRP and RLUSD to its Digital Asset Custody platform. The bank oversees approximately $63.4 trillion in assets under custody or administration.
How much did XRP ETFs withdraw on November 9?
US spot XRP ETFs recorded approximately $10.42 million in withdrawals on November 9, with Bitwise responsible for roughly $9.4 million. As of November 9, the funds held approximately $1.24 billion in combined net assets.
