As part of its broader effort to expand into the custody business, Ripple is launching new services for storing digital assets for financial institutions.
The San Francisco-based company said the new features will allow its banking and fintech customers to safely store and manage digital tokens for their users.
Ripple Launches Ripple Custody to Compete in the Fast-Growing Digital Asset Custody Industry
According to a CNBC report, Ripple has launched new features to aid banks in managing and storing crypto assets under a special division called Ripple Custody.
The new features include anti-money laundering risk monitoring, pre-configured operational and policy settings, a new user-friendly interface, and integration with Ripple’s XRP Ledger blockchain.
The anti-money laundering risk monitoring will ensure safety and compliance, while the interface will make user engagement seamless.
This move will help Ripple grow beyond its primary business, XRP cryptocurrency, and RippleNet platform. RippleNet is a blockchain-based messaging system that allows banks to share updates about money transfers across a global network.
Meanwhile, the latest launch marks Ripple’s first big step toward combining all its custody products under one name: Ripple Custody. By doing this, the blockchain company aims to compete with companies like Coinbase, Fireblocks, and Gemini, which already offer similar services.
Notably, custody is a new but rapidly growing area in the digital asset world. Custodians are essential in helping clients protect their private keys.
Custodians do more than store crypto; they also assist with payments, settlements, and trading and ensure that the rules for digital currencies are followed worldwide.
According to the Boston Consulting Group, the crypto custody market is expected to grow significantly, possibly reaching $16 trillion by 2030.
Ripple said custody is one of the fastest-growing parts of its business. Ripple Custody saw over 250% customer growth this year alone and is now active in seven countries.
Some of its major clients include big names like HSBC, BBVA’s Swiss branch, Societe Generale, and DBS. This shows that Ripple is making substantial progress in the crypto custody market.
Expanding Custody Services to Tokenize Real-World Assets with XRP Ledger
Ripple is betting that more real-world assets will be traded as digital tokens. The company announced that its custody will soon be able to tokenize real-world assets, like fiat currencies, gold, oil, or real estate, using the XRP Ledger.
Furthermore, by integrating with the XRP Ledger, Ripple gives firms access to its decentralized exchange. This platform allows buyers and sellers of digital assets to trade directly without needing intermediaries, making trades faster at lower fees.
Aaron Slettehaugh, Ripple’s vice president of product, shared more about the company’s plans. He said Ripple’s Custody is expanding its services with the new features. It will help crypto and fintech businesses grow by providing secure and scalable solutions for managing digital assets.
Last year, Ripple bought Metaco, a custodian that helps others store and manage crypto. The aim was to grow Ripple’s crypto custody business. This year, Ripple also acquired Standard Custody & Trust Company to strengthen its services even more.
Meanwhile, Ripple is expanding during a challenging time for XRP. Recently, XRP’s price dropped after the U.S. SEC appealed the court ruling that XRP is not a security when sold to retail investors.