thecoinrepublic.com
Ripple has introduced new crypto custody services for banks and fintech firms, expanding its business into digital asset storage.
The new service aims to let clients store and manage cryptocurrencies securely with XRP Ledger integrated. Ripple is diversifying outside payment settlement and consolidating its custody efforts.
Ripple Enters the Crypto Custody Market
This news custody is a division of Ripple that offers secure crypto storage for financial institutions. It has a user-friendly interface, advanced policy settings, and anti-money laundering monitoring.
By implementing these features, banks and fintechs can store blockchain digital tokens securely while following today’s regulations.
However, this new service works through the blockchain of its XRP ledger. This gives clients instant access to its decentralized exchange, where they can trade using its native XRP but with low fees.
Aaron Slettehaugh, senior vice president of products at Ripple, mentioned in a media interview with CNBC,
“With new features, Ripple Custody is expanding its capabilities to better serve high-growth crypto and fintech businesses with secure and scalable digital asset custody.”
The market is seeing rapidly growing demand for crypto storage services, and the firm is joining the fray. The Boston Consulting Group predicts the global crypto custody market will reach $16 trillion by 2030. Th company aims to compete with established players like Coinbase, Gemini, and Fireblocks.
New features and Tokenization Opportunities
In addition to secure storage, Ripple Custody provides tools to tokenize real-world assets such as fiat currencies, commodities, and real estate. The XRP ledger allows clients to tokenize the assets and trade with them seamlessly while settling on the ledger. According to Ripple, more real-world assets will be tradable as digital tokens.
The company said its custody division has experienced over 250% customer growth this year. Ripple Custody operates in seven countries and counts major institutions like HSBC, Societe Generale, and DBS among its clients. By consolidating its custody offerings under one brand, Ripple aims to streamline services for banks and fintech.
Their custody business grew significantly after acquiring crypto storage companies Metaco and Standard Custody & Trust Company. These acquisitions helped Ripple bolster its custody capabilities and expand its digital asset storage market presence. The company continues to focus on developing new solutions to attract more institutional clients.
Challenges and Competition in the Custody Market
Although Ripple is showing growth, it still faces challenges in the market with other custody providers. Firms like Coinbase, Gemini, and BitGo offer these services to financial institutions. However, the firm believes its unique integration with the XRP ledger and tokenization capabilities will set it apart.
Ripple Custody aims to be compliant, secure, and scalable and align with what the firm finds to be a rapidly rising tide of regulatory scrutiny over digital assets. The company states its dedication to following global regulatory standards to ensure secure and compliant storage of cryptocurrencies.
Ripple’s native token is currently trading at $0.5279, according to Coinmarketcap stats. The token price has dropped by 0.82% in the past 24 hours.