BNY Mellon

DTCC Tokenization Green Light Connects BNY Mellon to Ripple: The Trillion-Dollar Infrastructure Shift

DTCC patents name XRP for tokenized settlement. BNY Mellon connects DTCC infrastructure to Ripple's RLUSD. Today's CIL service launch cements the partnership. This isn't speculation—it's documented in patent filings and official announcements.

The Ripple Effect

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DTCC Tokenization Green Light Connects BNY Mellon to Ripple: The Trillion-Dollar Infrastructure Shift

The world's largest securities settlement organization just received regulatory approval to tokenize trillions in assets—and the path connects directly through BNY Mellon to Ripple's blockchain infrastructure. In a convergence of announcements spanning the past eight months, DTCC received SEC authorization on December 11, 2025, to offer tokenization services, positioning XRP and other blockchain protocols at the center of a historic financial transformation.

Today, December 23, 2025, DTCC and BNY Mellon officially launched their Collateral-in-Lieu service under DTCC's Fixed Income Clearing Corporation, further cementing the operational partnership between these two infrastructure giants. This launch represents the first live implementation of their collaborative blockchain-enabled infrastructure.

DTCC Tokenization Green Light Connects BNY Mellon to Ripple: The Trillion-Dollar Infrastructure Shift

The world's largest securities settlement organization just received regulatory approval to tokenize trillions in assets—and the path connects directly through BNY Mellon to Ripple's blockchain infrastructure. In a convergence of announcements spanning the past eight months, DTCC received SEC authorization on December 11, 2025, to offer tokenization services, positioning XRP and other blockchain protocols at the center of a historic financial transformation.

Today, December 23, 2025, DTCC and BNY Mellon officially launched their Collateral-in-Lieu service under DTCC's Fixed Income Clearing Corporation, further cementing the operational partnership between these two infrastructure giants. This launch represents the first live implementation of their collaborative blockchain-enabled infrastructure.

The DTCC Connection: Patents Name XRP as Settlement Infrastructure

DTCC filed patent US20250078162A1 titled "Systems, Methods, and Storage Media for Managing Digital Liquidity Tokens" which explicitly lists XRP and XLM as compatible networks within its cross-ledger liquidity framework. This isn't speculation—it's documented in the patent filing.

A parallel patent, US20250078065A1, describes DTCC's approach to moving global financial assets onto blockchain networks, maintaining centralized institutional control while leveraging distributed ledger technology. The patent explicitly names compatible blockchain implementations including Bitcoin, Ethereum, Hedera Hashgraph, Binance, Flow, Tron, Tezos, Cosmos, and crucially, the Ripple XRP Ledger.

DTCC processes approximately $2-4 quadrillion in securities annually, making it the backbone of global finance. When an organization of this scale files patents naming specific blockchain protocols, it signals strategic intent, not exploratory research.

BNY Mellon: The Bridge Between DTCC and Ripple

This is where the pieces connect. DTCC's Smart NAV pilot project with Chainlink included major participants such as JPMorgan, Franklin Templeton, BNY Mellon, and State Street, exploring how to deliver structured Net Asset Value data on-chain for tokenized funds.

BNY Mellon's role in this infrastructure buildout is central:

1. DTCC Collaboration - Launched Today

DTCC and BNY today announced that DTCC's Fixed Income Clearing Corporation officially launched its Collateral-in-Lieu service via BNY's Global Collateral Platform, with BNY Securities Finance and Federated Hermes executing the first repo trade on the new solution.

Laura Klimpel, Managing Director, Head of DTCC's Fixed Income and Financing Solutions, stated: "We are pleased to officially launch our Collateral-in-Lieu service on BNY's Global Collateral Platform. This important milestone underscores our commitment to delivering innovative solutions that enhance margin and capital efficiency for all types of firms."

2. On-Chain Data Broadcasting

On April 3, 2025, BNY announced the expansion of its Digital Asset Platform with Digital Asset Data Insights, broadcasting select fund accounting data to the Ethereum network using smart contract technology.

3. Ripple Partnership

On July 9, 2025, Ripple selected BNY Mellon as the primary custodian for Ripple USD (RLUSD) reserves, bringing $52.1 trillion in custodial expertise to Ripple's enterprise stablecoin.

The Infrastructure Stack: DTCC → BNY Mellon → Ripple

The connection creates a clear infrastructure pathway:

Layer 1: Settlement Infrastructure (DTCC)

  • Processes quadrillions in securities annually
  • Patents name XRP as compatible settlement network
  • SEC authorization for tokenization services (December 11, 2025)
  • Collateral-in-Lieu service launched today (December 23, 2025)

Layer 2: Custodial & Operational Bridge (BNY Mellon)

  • $52.1 trillion in assets under custody
  • Collaborates with DTCC on tokenized fund infrastructure
  • Broadcasts on-chain data to Ethereum
  • Primary custodian for RLUSD reserves

Layer 3: Blockchain Settlement Layer (Ripple/XRP)

  • XRP Ledger supports 1,500+ TPS with near-instant finality
  • Optimized for institutional cross-border settlement
  • RLUSD stablecoin purpose-built for enterprise utility
  • NYDFS Trust Company Charter for regulatory compliance

The DTCC patent notes that XRP and XLM will play a key role in reducing transaction costs for liquidity operations while supporting cross-chain fund entry and redemption.

BlackRock: The First Enterprise Implementation

The practical application of this infrastructure is already live. BlackRock will be the first client to use BNY's on-chain data tool, which provides up-to-date Net Asset Value data directly on blockchain for tokenized funds like BUIDL.

This creates a proof-of-concept for the entire stack:

  • BlackRock's tokenized fund (BUIDL)
  • BNY Mellon's on-chain data broadcasting
  • DTCC's settlement infrastructure
  • Blockchain protocols (including XRP) for final settlement

Regulatory Tailwinds Accelerate Adoption

The timing of these developments coincides with significant regulatory shifts. Under the Trump administration, the SEC quickly rescinded SAB 121, the guidance that was broadly unpopular among banks and crypto firms.

In September 2024, BNY Mellon gained an SEC exemption to expand digital asset services and bypass balance-sheet liabilities for crypto custody, clearing the path for comprehensive institutional crypto services.

Most significantly, DTCC received a No-Action Letter from the SEC on December 11, 2025, to offer new tokenization services, accelerating the adoption of digital assets in traditional markets.

The CIL service launched today enhances FICC's clearing model offerings by delivering significant margin and capital efficiencies and will accelerate the market's transition to central clearing under the SEC's U.S. Treasury clearing mandate.

What This Means for XRP and Ripple

The SEC officially closed its lawsuit against Ripple Labs in March 2025, confirming that XRP is not considered a security for public exchange sales. This regulatory clarity, combined with DTCC's patent naming XRP as compatible infrastructure, positions Ripple at the intersection of traditional finance and blockchain settlement.

The significance extends beyond speculation:

Confirmed Facts:

  • DTCC patents explicitly name XRP as compatible settlement infrastructure
  • BNY Mellon serves as custodian for RLUSD reserves
  • DTCC and BNY Mellon launched collaborative clearing services today (December 23, 2025)
  • SEC has authorized DTCC tokenization services
  • BlackRock is first client for on-chain data services

Strategic Positioning:

Ripple's involvement with DTCC, the world's largest settlement utility, further solidifies its position in the financial sector, with DTCC's liquidity tokenization plan involving XRP highlighting the token's growing role in mainstream financial operations.

What's Not Confirmed:

It's important to note that while DTCC patents name XRP as compatible technology, DTCC has not announced:

  • XRP as the exclusive or primary settlement layer
  • Specific implementation timelines for XRP integration
  • Commercial terms or partnership agreements with Ripple

Community members have urged caution, noting that speculation regarding formal adoption of XRP at the DTCC level is not backed by official sources beyond the patent filings. Claims that XRP will serve as the backbone of DTCC's transformation remain speculative pending official implementation announcements.

Market Context and Price Reality

As of December 23, 2025, XRP is trading around $1.88-$1.94, down significantly from highs above $3.30 earlier in the year following the SEC settlement. The current price reflects market uncertainty despite positive infrastructure developments.

Analyst predictions vary widely, with conservative estimates suggesting $2.05-$2.38 in 2026, while more optimistic longer-term forecasts range to $5+ if institutional adoption accelerates. However, these are predictions, not guarantees, and cryptocurrency markets remain highly volatile.

Critical Context: Price predictions are inherently speculative. The infrastructure developments described in this article represent long-term strategic positioning, not immediate price catalysts. Actual commercial implementation of DTCC tokenization using XRP would likely take years, not months.

The Institutional Adoption Reality

A survey sponsored by BNY Mellon found that 91% of institutional investors are interested in investing in tokenized products, with 41% already holding cryptocurrency. This data predates the recent DTCC authorization and BNY Mellon partnership expansions, suggesting institutional appetite for these solutions.

RLUSD's market cap crossed $1.1 billion, driven by its deployment on Ethereum for DeFi liquidity and XRP Ledger for low-cost settlements, demonstrating real enterprise adoption beyond speculation.

The Broader Transformation

DTCC's collaboration with Chainlink on the Smart NAV pilot achieved seamless, secure data transmission across multiple blockchain networks, standardizing NAV data dissemination and improving interoperability. This technical foundation supports the broader tokenization vision.

The infrastructure being built supports multiple use cases beyond payments:

  • Tokenized securities settlement
  • Cross-border liquidity management
  • Real-time collateral optimization
  • Automated compliance reporting
  • Instantaneous fund redemptions

Timeline of Key Developments

2021-2022: BNY Mellon establishes digital asset unit and launches custody platform

April 3, 2025: BNY Mellon launches on-chain data broadcasting to Ethereum

May 2025: DTCC patents naming XRP published

July 9, 2025: Ripple selects BNY Mellon as RLUSD custodian

September 2025: BNY Mellon receives SEC exemptions for crypto custody

December 11, 2025: DTCC receives SEC authorization for tokenization services

December 23, 2025: DTCC and BNY Mellon launch Collateral-in-Lieu service

Key Takeaways

  1. Confirmed Infrastructure: DTCC patents explicitly name XRP as compatible settlement technology
  2. Operational Partnerships: DTCC and BNY Mellon have active collaborative services launched today
  3. Ripple Integration: BNY Mellon serves as custodian for RLUSD, creating direct operational link
  4. Regulatory Clarity: SEC lawsuit resolved; DTCC authorized for tokenization; SAB 121 rescinded
  5. Institutional Interest: 91% of institutional investors interested in tokenized products
  6. Implementation Timeline: Commercial deployment likely years away, not immediate

What's Speculation vs. What's Confirmed

Confirmed by Official Sources:

  • DTCC filed patents naming XRP as compatible network
  • BNY Mellon is RLUSD custodian
  • DTCC received SEC tokenization authorization
  • BNY Mellon broadcasts data on-chain
  • DTCC and BNY Mellon have operational partnership launched today

Not Officially Confirmed:

  • XRP as primary or exclusive DTCC settlement layer
  • Specific implementation timelines
  • Commercial terms between DTCC and Ripple
  • Guaranteed adoption by financial institutions
  • Price impact or investment returns

The infrastructure being built is real and documented. The timeline and commercial adoption remain to be determined. Investors should distinguish between long-term strategic positioning and near-term price predictions.

DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with any of the mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.

Sources & References

DTCC Official Announcements & Patents

December 23, 2025 Launch Announcement

SEC Tokenization Authorization

Patent Documentation & Analysis

Smart NAV Pilot Project

BNY Mellon Official Press Releases

Digital Asset Platform Expansion

Ripple RLUSD Custody Partnership

Digital Asset Custody Platform

Major Financial News Coverage

Fortune Analysis

CNBC Coverage

Bloomberg Analysis

Cryptocurrency & Digital Asset Analysis

Institutional Adoption Analysis

Partnership Coverage

Community Response & Analysis

Stablecoin Market Data

Market Data & Price Analysis

Price Predictions (For Reference Only - Not Investment Advice)

Editorial Standards & Methodology

Source Credibility Assessment This article prioritizes official press releases, patent filings, and direct statements from DTCC, BNY Mellon, Ripple, and regulatory bodies. Secondary sources from established financial media (Fortune, Bloomberg, CNBC) and reputable cryptocurrency publications are used for additional context and market analysis.

Speculation Disclosure All speculative elements, including price predictions and adoption timelines, are clearly labeled and distinguished from confirmed facts. Patent filings naming XRP are factual; commercial implementation timelines and guaranteed adoption remain speculative.

Data Currency Market data and prices are current as of December 23, 2025. Infrastructure developments reflect announcements through December 23, 2025.

About This Article
This analysis synthesizes publicly available information from official announcements, patent filings, regulatory documents, and financial news sources. The article distinguishes between confirmed infrastructure developments (DTCC patents naming XRP, BNY Mellon custody agreements, regulatory approvals) and speculative elements (implementation timelines, price predictions, adoption rates).

Fact-Checking Standards
Every claim regarding partnerships, patents, and regulatory approvals is linked directly to primary sources. Price predictions are attributed to specific analysts and platforms and do not constitute investment recommendations.

Last Updated: December 23, 2025, 5:00 PM EST

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