U.S. blockchain startup Ripple has expanded its services by launching new features to help banks and financial technology firms store digital assets for their clients. This move marks Ripple’s entry into the crypto custody business with its new division, Ripple Custody. The features offered include operational and policy settings, integration with the XRP Ledger blockchain platform, monitoring of anti-money laundering risks, and a user-friendly interface. This diversification beyond its core payment settlement business will position Ripple to compete with companies like Coinbase, Gemini, and Fireblocks that are already offering similar services.
Custody is a growing sector within the digital asset space, where custodians play a crucial role in helping clients safeguard private keys needed to access digital assets and authorize transactions. They also assist with payments, settlements, trading, and regulatory compliance. Ripple forecasts that the crypto custody market could reach $16 trillion by 2030. Ripple Custody, which has seen customer growth of over 250% year-over-year and operates in seven countries, counts HSBC, BBVA, Societe Generale, and DBS among its clients. With the increasing trend of real-world assets becoming tradable as digital tokens, Ripple will allow customers to tokenize assets like fiat currencies, commodities, or real estate using the XRP Ledger.
The integration with XRP Ledger technology will give firms access to Ripple’s decentralized exchange, which facilitates faster and lower-fee trading by matching buyers and sellers directly without intermediaries. Ripple Custody aims to better serve high-growth crypto and fintech businesses with secure and scalable digital asset custody through these new capabilities. As part of its efforts to strengthen its crypto custody business, Ripple acquired Metaco and Standard Custody & Trust Company last year. This move towards diversification comes at a sensitive time for Ripple’s XRP cryptocurrency, as its value recently plummeted following an appeal filed by the U.S. SEC in connection with allegations of illegal securities offering.
Ripple’s decision to enhance its custody services aligns with the growing demand for secure storage solutions in the digital asset space. The company’s expansion into custody reflects its commitment to providing comprehensive services for banks and fintech firms looking to store digital assets for their clients. By offering advanced features including policy settings and compliance monitoring, Ripple aims to attract a broader clientele and compete with established players in the custody space. The integration with the XRP Ledger platform further enhances the value proposition for customers, enabling them to tokenize real-world assets and benefit from a decentralized exchange for trading digital assets.
The growth potential in the crypto custody market presents a significant opportunity for companies like Ripple to capitalize on the increasing demand for secure digital asset storage solutions. With its strong customer base and global presence, Ripple Custody is well-positioned to cater to the needs of high-growth crypto and fintech businesses seeking reliable custody services. By leveraging its expertise in blockchain technology and decentralized finance, Ripple can offer innovative solutions for storing and managing digital assets securely. Despite regulatory challenges and market volatility, Ripple’s strategic focus on expanding its custody services demonstrates its commitment to delivering value-added solutions for the evolving digital asset landscape.
