Ripple is piloting its US dollar-backed stablecoin RLUSD within the Monetary Authority of Singapore’s sandbox, aiming to automate and modernize cross-border trade finance through blockchain technology. This move marks a milestone for enterprise adoption of tokenized settlement infrastructure and strengthens the integration between traditional banking systems and distributed ledger solutions.
Blockchain Collaboration Streamlines Trade Finance
Through the sandbox, Ripple is advancing a use case for automated trade payments in partnership with Unloq’s SC+ platform. The pilot leverages Ripple’s blockchain network, including the XRP Ledger, to connect shipment data verification directly with payment automation using RLUSD. This structure is designed to reduce manual interventions in cross-border transactions and deliver a more streamlined, efficient system.
BNY Mellon’s Role And Larger Banking Integration
BNY Mellon acts as the primary custodian for RLUSD reserves, underscoring institutional trust and robust asset backing for the stablecoin. With over $50 trillion in assets under custody, BNY Mellon is one of the world’s oldest and largest custody banks, providing financial solutions for institutional clients. The bank is also integrating Ripple Prime, supporting tokenized deposit services that connect established financial systems with blockchain infrastructure.
The pilot is conducted as part of Singapore’s BLOOM initiative, led by the Monetary Authority of Singapore. This initiative is dedicated to building programmable settlement models through tokenized bank liabilities and stablecoins, reflecting the city-state’s drive toward a digitally enabled and interoperable financial landscape.
Ripple, a global enterprise blockchain company specializing in real-time settlement systems and cross-border payments, has a track record of working with financial institutions to bridge digital assets and traditional finance. The partnership with Unloq builds on both firms’ expertise in digital workflows for trade and supply chain processes.
A central feature of this collaboration is the use of condition-based payments. Funds are released only when specific shipment criteria are met, improving transparency and mitigating counterparty risk throughout the trade lifecycle. The smart contracts running on the XRP Ledger enable automated, auditable payments in RLUSD, which enhances trust and speeds up settlement while adhering to regulatory benchmarks.
The integrated solution brings together trade obligations, settlement conditions, and financing procedures within a single system. This end-to-end approach not only accelerates transaction settlement but also helps align participating institutions with compliance requirements across jurisdictions.
By utilizing smart contracts and tokenized assets, the pilot may expand access to trade finance—especially for small and medium-sized enterprises that face hurdles in traditional banking. The collaboration aims to deliver scalable, interoperable infrastructure for global trade, with the potential to improve efficiency and lower barriers for a broader range of market participants.
The future of crypto runs through big banks.
This comment from BNY Mellon CEO Robin Vince captures the ongoing alignment between established financial institutions and blockchain technology providers. The pilot in Singapore highlights practical steps toward integrating regulated stablecoins into current banking frameworks without displacing existing systems.
