Institutional growth doesn’t always show up as direct capital inflows.
Instead, in recent years, it has increasingly taken the form of partnerships. Major financial institutions are using blockchain technology for practical use cases such as cross-border payments and everyday transactions.
Building on this trend, BNY Mellon (a global bank with $50 trillion in AUM) has launched tokenized deposits (digital versions of cash) for institutional clients. Notably, it chose Ripple Prime as an early adopter.
Looking deeper, this move goes beyond a simple boost for the XRPL.
Notably, many in the market see it as the start of a “digital dollar” era. One where institutional funds aren’t tied up in traditional fiat or stablecoins, but exist as “digital cash” that can move instantly in a 24/7 market.
Ripple now sits at the center of this shift. The key question is – How does this partnership impact Ripple’s institutional growth, especially with BNY already acting as a primary custodian for its native digital dollar – RLUSD?
BNY’s recent move is part of a broader trend in global finance.
As the initial “hype” around Central Bank Digital Currencies (CBDCs) gives way to real adoption, BNY’s launch of tokenized deposits represents the first step in what could become a wave of banks following suit.
In this context, Ripple being chosen as an “early adopter” is a strong signal of its growing role in digital finance. In line with this, XRP ETFs reaching $1 billion in AUM is an early sign of rising institutional interest too.
Notably, XRP’s price performance adds context to this trend.
From a technical lens, despite closing 2025 down 12% and facing a market pullback, XRP ETFs have still gathered $1 billion in assets since their launch in November.
Why does this matter? It indicates that institutions aren’t just betting on XRP’s price. Instead, they’re showing confidence in Ripple itself, with the BNY partnership serving as a clear signal of growing trust and adoption.
In short, Ripple is attracting institutional capital based on fundamentals. Hence, this explains why its 2026 cycle looks set to remain institutionally driven, reinforcing its role in the tokenized cash ecosystem.
