Coinspeaker Ripple Expands into Crypto Custody with New Services for Banks and Fintech Firms
Renowned blockchain network Ripple is making a major move into the crypto custody business. On Thursday, the company launched new services aimed at enabling banks and financial technology firms to securely store and manage digital assets on behalf of their clients.
Known primarily for its native crypto token XRP and the RippleNet platform, Ripple’s recent push into custody represents an expansion of its business portfolio under the newly formed Ripple Custody division.
The company revealed that its custody services come with pre-configured operational and policy settings. These features integrate seamlessly with Ripple’s blockchain platform, the XRP Ledger, and include anti-money laundering (AML) monitoring to ensure regulatory compliance. Ripple has also introduced a user-friendly interface for easier engagement.
Growth Beyond Payment Solutions
Ripple’s expansion into crypto custody is an effort to diversify beyond its core business of payment settlements. RippleNet, which allows banks to share updates on international money transfers via blockchain technology, has been the cornerstone of Ripple’s success. However, this move into custody services positions Ripple to compete with established players like Coinbase, Gemini, and Fireblocks.
With the crypto custody market predicted to hit at least $16 trillion by 2030, according to the Boston Consulting Group, Ripple is eyeing a lucrative opportunity. Ripple Custody has already seen significant growth, with over 250% customer growth this year and operations in seven countries. Major clients, including HSBC, BBVA, Societe Generale, and DBS, have already onboarded Ripple’s custody solutions.
The company believes that the future of finance will increasingly involve tokenizing real-world assets like fiat currencies, commodities, and real estate. Ripple’s clients can use the XRP Ledger to tokenize these assets and access Ripple’s decentralized exchange, which allows for faster, low-fee trades without the need for intermediaries.
Meanwhile, Ripple is also coming with a USD-backed stablecoin, RLUSD. It started minting this stablecoin on the XRP Ledger and Ethereum mainnet and expects a potential launch in a few weeks.
Legal Battles amid Expansion
Ripple’s custody ambitions come at a time of regulatory uncertainty for its XRP cryptocurrency. Just last week, XRP prices saw a sharp decline following the U.S. Securities and Exchange Commission’s (SEC) appeal of a 2023 court ruling, which declared that XRP should not be considered a security when sold to retail investors. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed the company’s frustration with the appeal and hinted at a possible cross-appeal.
Despite these legal challenges, institutional interest in Ripple remains strong. Two major asset management firms, Bitwise and Canary Capital, recently applied for spot XRP ETFs with the SEC, capitalizing on the success of Bitcoin ETFs earlier this year.
Ripple’s ability to attract such interest demonstrates its ongoing influence and potential for growth in the digital asset space, despite the obstacles it faces.
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Ripple Expands into Crypto Custody with New Services for Banks and Fintech Firms
