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Ripple, the US-based blockchain firm, is making significant strides in the world of crypto custody, aiming to help banks and fintech companies securely manage and store digital assets for their clients.
In a bold move to diversify beyond its core payment settlement business, Ripple launched a suite of crypto custody services under its newly formed division, Ripple Custody, CNBC reported.
This marks a major step for the company as it consolidates its custody solutions to compete with established players like Coinbase, Gemini, and Fireblocks.
The San Francisco-based firm, best known for its cryptocurrency XRP and its RippleNet payment platform, is expanding its services to include features like pre-configured operational settings, anti-money laundering risk monitoring, and an intuitive user interface.
These new offerings integrate directly with Ripple’s XRP Ledger blockchain, providing seamless access to its native decentralized exchange, which facilitates fast, low-cost trading without intermediaries.
Ripple’s venture into crypto custody comes at a time when the market is rapidly growing, with the global crypto custody industry expected to hit $16 trillion by 2030, according to Boston Consulting Group.
Ripple Custody has already seen remarkable success, boasting over 250% growth in customers year-over-year and expanding its operations into seven countries.
Major clients such as HSBC, BBVA Switzerland, Societe Generale, and DBS have adopted Ripple’s solutions to safely store and manage digital assets.
With the increasing digitization of real-world assets like fiat currencies, commodities, and real estate, Ripple is betting on the tokenization trend.
Through its custody services, Ripple aims to offer businesses the ability to tokenize these assets on the XRP Ledger, creating a secure and scalable framework for digital asset management.
Aaron Slettehaugh, Ripple’s Senior Vice President of Product, emphasized the company’s focus on expanding its custody capabilities to better support the evolving needs of high-growth crypto and fintech firms.
Last year, Ripple strengthened its position in this sector with the acquisition of Metaco, a crypto storage and management firm, and further bolstered its efforts with the purchase of Standard Custody & Trust Company earlier this year.
This expansion comes at a challenging time for XRP, Ripple’s flagship cryptocurrency, which recently saw a price drop following the US Securities and Exchange Commission’s decision to appeal a 2023 ruling that XRP is not a security.
Despite this, Ripple remains confident in its long-term strategy to diversify and lead in the fast-growing crypto custody market.
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