Blockchain payments company Ripple has launched digital assets storage services for banks and fintech firms.
According to an Oct. 10 CNBC report, Ripple debuted features that would keep and maintain digital assets for its banking and fintech clients. The move is part of its push to widen the reach of its newly formed division, which focuses on digital asset custody.
The move consolidates the company’s custody products under one brand called Ripple Custody.
Ripple dives into crypto custody
The new features include integration with Ripple’s blockchain platform, the XRP Ledger. It also includes pre-configured operational and policy settings and Anti-Money Laundering risk monitoring. It also integrates a new user interface.
The move helps the company diversify its offerings beyond payment settlement. Apart from its XRP (XRP) crypto asset, Ripple is known for its RippleNet platform, a distributed network that allows banks to share updates on the status of fund movements.
As more institutions eye crypto investments, the demand for crypto custody grows. Custody service providers help institutions store their crypto by safeguarding their private keys. They also help their customers trade and settle crypto payments, ensuring they comply with digital asset laws.
In a statement to CNBC, Ripple’s senior vice president of product, Aaron Slettehaugh, said that the new features expand Ripple Custody’s capabilities to serve fintech businesses with scalable digital asset custody.
The company also mentioned that custody is one of their fastest-growing businesses. The company highlighted that its custody arm gained a 250% year-on-year growth and now operates in seven countries.
Digital asset custody services gain traction
Banks are also gearing up to offer custody services for crypto assets.
On Sept. 10, Standard Chartered started offering digital asset custody services in the United Arab Emirates. The banking corporation said it would start its custody business with Bitcoin (BTC) and Ether (ETH). The bank had secured a Dubai Financial Services Authority license to offer custody services.
Meanwhile, Taiwan’s Financial Supervisory Commission is preparing a sandbox for crypto custody services. On Oct. 8, the country’s Financial Supervisory Commission announced it would start collecting applications in the first quarter of 2025.
Three private banks in the country had already expressed interest in diving into the crypto custody business.
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