Ripple now launches a crypto storage service for massive banks such as HSBC, the Swiss arm of BBVA, and DBS for example.
On Thursday, U.S. blockchain startup Ripple announced a significant expansion into crypto custody, introducing new services designed to assist banks and fintech companies in securely storing digital assets for their clients.
Based in San Francisco, Ripple revealed to CNBC that it is launching various features to help its banking and fintech partners manage digital tokens.
This initiative is part of a broader effort to grow its custody services, which fall under the newly established Ripple Custody division formed last year.
The new features include pre-set operational and policy configurations, integration with Ripple’s XRP Ledger blockchain, monitoring for anti-money laundering compliance, and a user-friendly interface that enhances engagement.
This move allows Ripple, primarily recognized for its XRP cryptocurrency and Ripple Payments platform, to diversify beyond its traditional payment settlement operations.
Ripple Payments utilizes blockchain technology to enable banks to share real-time updates about money transfers within a global network.
Thursday’s announcement marks Ripple’s first major effort to unify its custody offerings under the Ripple Custody brand, positioning itself against established competitors like Coinbase, Gemini, and Fireblocks.
The custody sector, although still in its early stages, is rapidly expanding. Custodians play a crucial role in the crypto ecosystem by safeguarding private keys—essential codes needed to access digital assets and authorize transactions.
In addition to storage, custodians also facilitate payments, settlements, trading, and ensure compliance with regulations governing digital currencies.
The crypto custody market is projected to reach at least $16 trillion by 2030, according to the Boston Consulting Group.
Ripple noted that custody services are one of the fastest-growing areas for the company, reporting over 250% year-over-year customer growth this year and operating in more than 20 countries.
Its client roster includes major institutions like HSBC, BBVA’s Swiss branch, Societe Generale, and DBS.
Ripple aims to enable clients to tokenize real-world assets—such as fiat currencies, commodities like gold and oil, and real estate—using the XRP Ledger.
The integration with the XRP Ledger will also provide access to Ripple’s decentralized exchange, allowing for direct trading of various digital assets without intermediaries, resulting in quicker and more cost-effective transactions.
“With these new features, Ripple Custody is enhancing its capabilities to better serve rapidly growing crypto and fintech businesses with secure and scalable digital asset custody,” stated Aaron Slettehaugh, Ripple’s senior vice president of product.
Last year, Ripple acquired Metaco, a company focused on crypto storage and management, to bolster its custody services.
This year, Ripple also acquired Standard Custody & Trust Company, another player in the crypto custody market.
However, Ripple’s diversification efforts come at a challenging time for XRP.
Last week, the price of XRP dropped sharply following the U.S. Securities and Exchange Commission’s announcement to appeal a 2023 court ruling that determined the token should not be classified as a security when sold to retail investors.
As the largest holder of XRP, Ripple has been engaged in a long-standing legal battle with the SEC over accusations of selling the cryptocurrency in an illegal securities offering, which Ripple contests.
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Also Read: The SEC Is Now Under Massive Scrutiny Following XRP Appeal
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