Ripple has expanded its reach into the blockchain space, launching a cryptocurrency storage and management service for banks, among other fintech companies.
This move expands the company's custody services and could help advance other infrastructure offerings within the Ripple ecosystem.
Ripple to Help Banks and FinTech Players Store Digital Tokens
Ripple is expanding beyond its core payment settlement business with a new venture aimed at helping banks manage their crypto assets. According to a report from CNBC, this marks the launch of Ripple Custody, unifying its various custody products under one service.
Ripple already serves banks with RippleNet, a messaging platform that enables global money transfer updates. However, this new project puts Ripple in competition with established cryptocurrency custodians like Coinbase, Gemini, and Fireblocks.
Ripple also plans to stand out by offering features such as custom operating settings, policy controls, integration with the XRP Ledger blockchain, enhanced compliance monitoring, and a more intuitive user interface.
“With new features, Ripple Custody expands its capabilities to serve crypto and fintech startups with a secure and scalable digital asset custody service,” said Aaron Sletho, SVP of Product at Ripple.
In addition to custodial services, Ripple will assist client banks and fintech companies with payment processing, settlements, and trade facilitation.
Ripple Custody is tapping into one of the fastest-growing sectors, with Boston Consulting Group predicting 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.
Customers can convert real-world assets into tokens using the XRP Ledger.
Ripple’s latest custody project will also allow customers to convert real-world assets such as fiat currencies, gold, oil, and real estate into tokens on the XRP Ledger (XRPL). Ripple is betting on the growing trend of tokenized real-world assets becoming tradable as digital assets in the future.
XRP Ledger, a layer-one blockchain supporting 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 cryptocurrencies and real-world assets. By integrating with XRPL, businesses gain access to Ripple’s decentralized exchange, enabling direct trading with low fees between sellers and buyers.
Ripple Custody has seen over 250% year-over-year growth in customers, driven by the acquisition of Metaco and Standard Custody & Trust. The move enhances Ripple’s custody capabilities and ensures regulatory compliance, as more institutions explore the token.
Ripple also operates in several countries, with major banks like HSBC, BBVA, Societe Generale, and DBS supporting the platform. These companies use Ripple’s regulated custody services, in partnership with Zodia Custody, through Metaco. Ripple’s focus on tokenization could also boost its centralized cryptocurrency infrastructure, creating CBDCs fully backed by tokenized real-world assets.
Additionally, Ripple is planning to enter the stablecoin market with its Ripple USD (RLUSD) product, which is currently undergoing beta testing. Although RLUSD shows promise, it will face stiff competition in the already crowded stablecoin market.
