- Ripple Labs is launching a new crypto custody service, expanding beyond its traditional cross-border payments into secure digital asset management for fintech firms.
- Ripple Custody offers secure storage solutions with AML tools and tokenization features, positioning Ripple to capitalize on a $16 trillion market by 2030.
- Customer growth for Ripple Custody surged 250% year-over-year, with major institutions like HSBC and DBS already using the service, reflecting increased institutional demand.
Ripple Labs, known for its innovations in cross-border payments, is expanding its horizons. The San Francisco-based firm is launching a new crypto custody service, Ripple Custody, marking a major shift in its business model. This strategic move signals the firm’s intention to diversify beyond its well-established XRP cryptocurrency and RippleNet payment network.
According to CNBC, Ripple’s new service aims to help fintech companies, including banks, store digital assets for their clients. This custody solution comes with features such as pre-configured security settings, anti-money laundering (AML) monitoring tools, and a user-friendly interface. These tools aim to simplify crypto management, making it easier for institutions to securely manage digital assets.
Ripple Custody focuses on securing private keys—critical elements in controlling digital assets. The service is built to meet global regulatory standards, ensuring that it complies with the strict security and legal frameworks required by institutional clients. This shift demonstrates the firm’s ambition to expand its business beyond payment settlements, venturing into a market set to see substantial growth.
The global crypto custody market is expected to reach $16 trillion by 2030, highlighting the potential for the new service’s growth. This move positions the firm to capitalize on the increasing demand for secure crypto storage solutions.
Tokenizing Real-World Assets on Ripple’s XRP Ledger
Beyond secure storage, the new service offers clients the ability to tokenize real-world assets like fiat currencies and commodities on the XRP Ledger. This gives users access to a decentralized exchange (DEX) with low-fee trading options, further enhancing the value proposition of the firm’s new service.
The firm’s foray into custody is bolstered by its acquisitions of Metaco and Standard Custody & Trust Company, strengthening its expertise and infrastructure in the digital asset custody space. These acquisitions provide the firm with the necessary tools and partnerships to support the growing demand for custody services from institutions.
Customer growth for the new service has surged by 250% year-over-year, with major players like HSBC and DBS already utilizing the service. This growth reflects the rising need for secure, institutional-grade crypto custody solutions.
Ripple’s bold step into crypto custody is a sign of the times. As the digital asset space grows, securing those assets will become paramount, and the firm is positioning itself at the forefront of that evolution.