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Ripple’s new custody services offer secure, compliant, and easy-to-use solutions for banks and fintech firms to store and manage digital assets, integrating seamlessly with its XRP Ledger platform.
Key Notes
Ripple has launched new custody services to help banks and fintech firms securely manage digital assets.The custody services feature pre-configured operational and policy settings for seamless integration with Ripple’s XRP Ledger.AML monitoring and a user-friendly interface enhance compliance and ease of use for financial institutions.Renowned blockchain network Ripple is making a major move into the crypto custody business. On Thursday, the company launched new services aimed at enabling banks and financial technology firms to securely store and manage digital assets on behalf of their clients.
Known primarily for its native crypto token XRP and the RippleNet platform, Ripple’s recent push into custody represents an expansion of its business portfolio under the newly formed Ripple Custody division.
The company revealed that its custody services come with pre-configured operational and policy settings. These features integrate seamlessly with Ripple’s blockchain platform, the XRP Ledger, and include anti-money laundering (AML) monitoring to ensure regulatory compliance. Ripple has also introduced a user-friendly interface for easier engagement.
Growth Beyond Payment Solutions
Ripple’s expansion into crypto custody is an effort to diversify beyond its core business of payment settlements. RippleNet, which allows banks to share updates on international money transfers via blockchain technology, has been the cornerstone of Ripple’s success. However, this move into custody services positions Ripple to compete with established players like Coinbase, Gemini, and Fireblocks.
With the crypto custody market predicted to hit at least $16 trillion by 2030, according to the Boston Consulting Group, Ripple is eyeing a lucrative opportunity. Ripple Custody has already seen significant growth, with over 250% customer growth this year and operations in seven countries. Major clients, including HSBC, BBVA, Societe Generale, and DBS, have already onboarded Ripple’s custody solutions.
The company believes that the future of finance will increasingly involve tokenizing real-world assets like fiat currencies, commodities, and real estate. Ripple’s clients can use the XRP Ledger to tokenize these assets and access Ripple’s decentralized exchange, which allows for faster, low-fee trades without the need for intermediaries.
Meanwhile, Ripple is also coming with a USD-backed stablecoin, RLUSD. It started minting this stablecoin on the XRP Ledger and Ethereum mainnet and expects a potential launch in a few weeks.
Legal Battles amid Expansion
Ripple’s custody ambitions come at a time of regulatory uncertainty for its XRP cryptocurrency. Just last week, XRP prices saw a sharp decline following the U.S. Securities and Exchange Commission’s (SEC) appeal of a 2023 court ruling, which declared that XRP should not be considered a security when sold to retail investors. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed the company’s frustration with the appeal and hinted at a possible cross-appeal.
Despite these legal challenges, institutional interest in Ripple remains strong. Two major asset management firms, Bitwise and Canary Capital, recently applied for spot XRP ETFs with the SEC, capitalizing on the success of Bitcoin ETFs earlier this year.
Ripple’s ability to attract such interest demonstrates its ongoing influence and potential for growth in the digital asset space, despite the obstacles it faces.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
