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Ripple, the San Francisco-based blockchain firm, has launched a new crypto custody service tailored for banks and fintech companies, enabling them to securely store cryptocurrencies for their clients. This initiative emerges as the Federal Reserve increases oversight on traditional banking institutions providing similar services to cryptocurrency entities.
What Are the Key Features of Ripple’s Custody Service?
In a recent announcement to CNBC, Ripple shared that its custody service will offer a range of features designed to support the secure storage of digital assets for its banking and fintech partners. This move is part of the newly formed Ripple Custody division, which aims to carve out a significant market presence in this sector. The launch was hinted at by Ripple’s CEO, Brad Garlinghouse, in September.
How Will Ripple Compete in the Market?
This introduction signifies Ripple’s intent to establish a stronghold in the crypto custody market, directly challenging established players like Coinbase and Gemini. The custody landscape is rapidly evolving, with companies like Coinbase already catering to major clients, including BlackRock, while traditional banks are starting to secure their own crypto custody licenses, such as BNY Mellon’s recent acquisition.
Ripple Custody is operational in seven countries, boasting a prestigious client base that includes HSBC, Societe Generale, and BBVA’s Swiss division. Additionally, the firm is expanding into the tokenization of real-world assets, facilitated by its integration with the XRP Ledger.
- Ripple Custody aims to meet all regulatory standards.
- It offers a comprehensive range of features for secure crypto storage.
- The initiative seeks to position Ripple competitively against existing custody providers.
- Ripple is also focusing on tokenization opportunities.
With this custody service, Ripple is poised to solidify its presence in the financial sector, responding to a growing demand for secure cryptocurrency storage among institutional clients.