Hamilton's Bank: A Surprise Winner in the Stablecoin Race

\In an unexpected twist, the Bank of New York Mellon (BNY), a financial institution tracing its roots back to Alexander Hamilton in 1784, is emerging as a significant beneficiary of the stablecoin boom.

Ripple Chooses BNY Mellon

The latest validation came as Ripple announced BNY Mellon as the primary custodian for the reserve assets backing its $500 million stablecoin, Ripple USD (RLUSD). BNY will manage the U.S. Treasury bills and other assets held as reserves, while also providing technology and transaction banking services.

A Stablecoin Powerhouse

BNY already serves as a custodian for the reserve assets of Circle's USDC, the second-largest stablecoin. This positions them as a major player in the infrastructure supporting the crypto ecosystem.

Wall Street's Stablecoin Interest

Other financial institutions are exploring stablecoin opportunities. A consortium of banks, including JPMorgan Chase, Wells Fargo, and Citigroup, are reportedly considering launching their own stablecoins. Morgan Stanley and Charles Schwab are also planning to offer crypto access through their wealth management platforms.

BNY Mellon's Head Start

BNY Mellon has a clear advantage, having launched a crypto custody service in October 2022 following regulatory approval.

BNY's CEO, Robin Vince, sees crypto as a long-term play, focusing on how its technology can improve the efficiency of dollar transactions. BNY's stock has outperformed the S&P 500 and most other US banks year-to-date.

Key Takeaways:

• BNY Mellon is becoming a dominant force in stablecoin custody.
• Wall Street is increasingly interested in stablecoins.
• BNY Mellon's early adoption gives it a competitive edge.