Yes and it was not in BJJ.
XC had their own grappling system in which he got the BB.
And Neil has also stated it was not for winning that fight but as a fun thing and to promote the system.
Also:
In UFC 118, Randy was awarded the ‘No Gi’ black belt by his grappling instructor, Neil Melanson, after winning against James Toney.
Even though he does not train in Jiu-Jitsu, Neil Melanson explained that he is a student of Karo Parisyan and that he has created his belt system."
And:
NM: I was going to give Randy his black belt two months prior to the event, but I wanted to do something nice for him and present it to him in front of the world. He deserves it and needs to be recognized for his accomplishment.
Neil Melanson is the head submission grappling coach for Xtreme Couture, Las Vegas and was kind enough to take part in an interview I conducted ahead of Randy
bloodyelbow.com