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 will keep and maintain digital assets for its banking and fintech clients.
The move is part of a push to widen the reach of its newly formed division and consolidates 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, 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 settlements. Apart from its 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 digital asset investments, the demand for crypto custody grows. Custody service providers help institutions store their crypto by safeguarding their private keys. They also help 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 said its custody arm enjoyed 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 firm said it would begin to its custody business with Bitcoin and Ether . It recently secured a Dubai Financial Services Authority license to offer custody services.
Meanwhile, Taiwan’s Financial Supervisory Commission (FSC) is preparing a sandbox for crypto custody services. On Oct. 8, the FSC announced it would start accepting applications in the first quarter of 2025.
Three private banks in the country had already expressed interest in diving into the crypto custody business.
