Ripple (XRP) has expanded its presence in the blockchain space, launching a cryptocurrency storage and management service for banks and fintechs.

The initiative expands the company’s custody services and could help advance other infrastructure offerings within the Ripple ecosystem.

Ripple wants to help banks and fintechs store crypto

Ripple is expanding beyond its core business of settling payments. To that end, it has created a new venture aimed at helping banks manage their crypto assets.

According to a report by CNBC, this marks the launch of Ripple Custody, consolidating its various custody products under one service. Ripple already serves banks with RippleNet, a messaging platform that enables global money transfer updates.

Read more: Ripple (XRP) Price Prediction 2021/2025

However, this new venture positions Ripple in competition with established crypto custody providers like Coinbase, Gemini, and Fireblocks.

Ripple plans to set itself apart by offering features such as customized operational settings, policy controls, integration with the XRP Ledger blockchain, enhanced compliance monitoring, and a more intuitive user interface.

“With new features, Ripple Custody is expanding its capabilities to better serve high-growth crypto and fintech companies with secure and scalable digital asset custody,” said Aaron Slettehaugh, Senior Vice President of Product at Ripple.

Read more: 9 Best Blockchain Protocols to Know in 2024

Additionally, Ripple will assist client banks and fintech companies with payment processing, settlements, and trade facilitation.

Ripple Custody enters one of the fastest-growing sectors, with Boston Consulting Group predicting that the crypto custody market could reach $16 trillion by 2030. This strategic move reflects Ripple’s ambitions to capitalize on the growing demand for secure crypto asset management.

Clients can tokenize RWAs using the XRP Ledger

Ripple Custody’s latest initiative will also allow clients to tokenize real-world assets (RWAs) such as fiat currencies, gold, oil, and real estate on the XRP Ledger (XRPL). Ripple is betting on the growing trend of tokenized RWAs becoming tradable as digital assets in the future.

The XRP Ledger, a layer-1 blockchain that supports XRP and other tokens, facilitates payments, tokenization, decentralized finance (DeFi), central bank digital currencies (CBDCs), and stablecoins.

It offers fast, low-cost, and secure transactions for both native crypto tokens and RWAs. By integrating with XRPL, businesses gain access to Ripple’s decentralized exchange, enabling direct, low-fee transactions between buyers and sellers.

Ripple Custody has seen over 250% year-over-year customer growth, driven by acquisitions of Metaco and Standard Custody & Trust Company. This move strengthens Ripple’s custody capabilities and ensures regulatory compliance as more institutions explore tokenization.

Ripple operates in several countries, with major banks such as HSBC, BBVA, Societe Generale and DBS supporting the platform. These companies use Ripple’s regulated custody services, along with Zodia Custody, through Metaco.

Ripple’s focus on tokenization could also strengthen its central bank digital currency infrastructure by creating CBDCs fully backed by tokenized real-world assets.

Finally, Ripple plans to enter the stablecoin market with its Ripple USD (RLUSD) product, currently in beta testing. While RLUSD shows promise, it will face stiff competition in an already saturated stablecoin space.

The article Ripple (XRP) Launches Crypto Services for Banks appeared first on BeInCrypto.