TLDR
- RLUSD has surpassed $600M in market cap and ranks among the top 200 digital assets globally.
- Bank of America is exploring stablecoins and has tested Ripple’s tech since 2019.
- RLUSD is backed 1:1 by cash and U.S. Treasuries and held by BNY Mellon.
- RLUSD received an “A” rating from Bluechip, the highest among all rated stablecoins.
Ripple’s stablecoin, RLUSD, is gaining traction as a top choice for U.S. banks exploring digital dollar-backed solutions. With strong regulatory alignment and custody by BNY Mellon, RLUSD is being closely watched by Bank of America as it evaluates its entry into the stablecoin space. The GENIUS Act, a new U.S. law for stablecoins, may further push institutions to consider compliant options like RLUSD.
Bank of America Explores Stablecoins as RLUSD Gains Institutional Interest
Bank of America has confirmed that it is studying the use of stablecoins, pending regulatory clarity. CEO Brian Moynihan said the bank has completed internal research and is monitoring the regulatory space. His comments came on July 16 during a financial event where he noted the need for clear laws before proceeding with any launch.
Although Moynihan did not confirm whether the bank would issue its own stablecoin, he did not rule it out either. Analysts say the bank could either develop a new digital asset or adopt an existing one.
RLUSD is viewed as a strong option due to its U.S. regulatory status and reserve structure. It is backed 1:1 by U.S. dollars and short-term government bonds, in compliance with recent legal changes.
🔥 JUST IN: BOA Introducing Stablecoins$RLUSD CONNECTION THREAD 🧵
Bank of America has documented history with Ripple dating back to 2019 patents mentioning Ripple's distributed ledger technology for interbank settlementCould $RLUSD be the stablecoin by @Ripple that banks… pic.twitter.com/wwzAK5lk2w
— PaulBarron (@paulbarron) July 24, 2025
Ripple’s RLUSD was created under the New York Department of Financial Services Trust Charter. This framework is known for strict oversight and reserve requirements. RLUSD is also fully integrated with both the Ethereum blockchain and Ripple’s XRP Ledger, enabling broad institutional use.
Regulatory Framework Pushes RLUSD to the Forefront
The GENIUS Act, passed earlier this year, set national rules for stablecoins in the U.S. It requires stablecoins to be backed by U.S. dollars or liquid assets like Treasury bills. It also mandates regular audits and prohibits interest payments to holders. RLUSD already meets these standards, according to Bluechip, a stablecoin rating agency.
RLUSD received an A rating from Bluechip, the highest grade among rated stablecoins. The agency cited its transparent reserve structure and third-party custody by BNY Mellon. Bluechip also confirmed that RLUSD’s reserves are not mixed with Ripple’s operating funds. This separation increases trust among banks and financial institutions.
Ripple has voiced public support for the GENIUS Act. CEO Brad Garlinghouse said the law is a step forward for digital finance. He pointed out that RLUSD was built to align with such rules from the beginning. Since the law took effect, RLUSD’s market cap has grown past $600 million. The token has also seen consistent demand, with 25 million new units minted on July 23.
Longstanding Relationship Strengthens RLUSD’s Case
Bank of America and Ripple have maintained a working relationship since 2019. Internal trials using Ripple’s distributed ledger technology have been ongoing, including early XRP-based settlement systems. These past trials suggest Bank of America is familiar with Ripple’s technical capabilities and regulatory approach.
More than 80 blockchain-related patents held by Bank of America mention systems compatible with Ripple’s framework. The shared history could support RLUSD’s case if the bank chooses to adopt an external stablecoin.
RLUSD’s integration with RippleNet, which is already used by partners like Santander and American Express, adds more weight to its institutional readiness.
Meanwhile, other U.S. banks are also exploring their own stablecoins. JPMorgan has extended its JPM Coin service, and Citigroup is reviewing tokenized deposit options. Still, RLUSD’s regulatory readiness and custody by a major U.S. bank position it well for consideration by large financial institutions.
Ripple’s continued focus on compliance and secure reserve backing has placed RLUSD in a leading position. As more banks move toward blockchain adoption under federal guidelines, RLUSD could see further institutional uptake.
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