Key Points:
- Ripple has launched Ripple Custody to securely manage and store crypto assets for banks and fintech companies.
- The custody service supports real-world asset tokenization, enabling financial institutions to tokenize assets like currencies and real estate.
- Ripple’s entry into the crypto custody market positions it against major competitors, with the sector projected to reach $16 trillion by 2030
Overview
Ripple has introduced a new service, Ripple Custody, to provide secure storage and management of crypto assets for banks and fintech companies. This move is part of Ripple’s strategy to diversify beyond its core payment business and expand into the growing crypto custody market, which is projected to reach $16 trillion by 2030. The service offers features such as advanced operational settings, integration with the XRP Ledger, and anti-money laundering (AML) monitoring to meet regulatory compliance.
What does this mean for Ripple?
Ripple Custody allows financial institutions to tokenize real-world assets like fiat currencies, gold, and real estate, aligning with the broader trend of asset tokenization. The company has already seen 250% growth in its custody business year-over-year, with notable clients like HSBC, Societe Generale, and DBS trusting Ripple for their crypto asset storage.
This move positions Ripple to compete with established firms in the crypto custody space, such as Coinbase and Gemini, as it continues to expand its influence. Ripple’s earlier acquisitions of Metaco and Standard Custody & Trust have bolstered its capabilities in the custody sector, and its recent focus on creating more user-friendly interfaces and compliant infrastructure has strengthened its offering.
References:
- CNBC – https://www.cnbc.com/2024/10/10/ripple-launches-crypto-storage-services-for-banks-in-bid-to-diversify.html
- Finbold – https://finbold.com/ripple-launches-crypto-custody-storage-for-banks/
- Cryptopoliton – https://www.cryptopolitan.com/ripple-crypto-storage-services-for-banks/
- CryptoNews – https://cryptonews.net/news/finance/29910261/
