- Ripple introduces custody services to assist banks and fintech companies.
- The custody industry is expanding, with Ripple experiencing 250% customer growth.
Ripple has announced the launch of new crypto custody services designed to assist banks and financial technology firms in safely storing digital assets for their customers. The release of these services represents a huge expansion for Ripple, coinciding with current issues with its XRP token.
The launch comes at a critical time, as the United States Securities and Exchange Commission (SEC) recently announced plans to appeal an outcome that declared XRP not a security in retail sales. Ripple is actively challenging the SEC’s charges about its XRP sales, which puts more pressure on its operations as it enters the custodial area.
With the launch of Ripple Custody, the company expands its operations beyond payment solutions. The new custody services feature pre-configured operational and policy settings, along with connectivity to the XRP Ledger blockchain. Additionally, they include anti-money laundering risk monitoring and a more user-friendly interface. The initiative aims to provide high-growth crypto and fintech startups with secure and scalable digital asset custody services.
Aaron Slettehaugh, Ripple’s Senior Vice President of Product, highlighted the significance of this development “With new features, Ripple Custody is expanding its capabilities to better serve high-growth crypto and fintech businesses with secure and scalable digital asset custody,” he said in a statement shared with CNBC.
A Growing Custody Market
The cryptocurrency custody industry is rapidly expanding. Ripple is entering this competitive field, which includes well-known companies such as Coinbase, Gemini, and Fireblocks. Custodians are critical in the crypto ecosystem as they protect the private keys required to access digital assets. They also make payments and trade easier while ensuring regulatory compliance.
Ripple reports that custody has become one of its fastest-growing areas. Ripple Custody has experienced over 250% customer growth year on year and operates in seven countries. HSBC and DBS Bank are some of the company’s significant clients.
Ripple aims to enable clients to tokenize real-world assets such as currencies and commodities on its XRP Ledger. This capability will be enhanced through the integration of custody services. The company has also expanded its custody products through strategic acquisitions, including Metaco, a crypto storage solutions provider, and Standard Custody & Trust Company.
As Ripple navigates these regulatory difficulties, its commitment to extending custody services demonstrates the enormous demand for safe digital asset storage solutions in the rapidly changing cryptocurrency ecosystem.
