Ripple announced the launch of new crypto custody services on Thursday (today). These services are designed to assist banks and financial technology firms in storing digital assets for their clients.
However, this diversification effort comes amid challenges for XRP, as the US Securities and Exchange Commission recently announced plans to appeal a ruling that deemed the token not a security in retail sales. Ripple continues to dispute the SEC's allegations regarding its XRP sales.
Custody Division for Digital Assets
The introduction of these features comes as part of Ripple’s expansion into custody services through its newly established division, Ripple Custody.
Ripple's new offerings include pre-configured operational and policy settings, integration with the XRP Ledger blockchain, anti-money launderingrisk monitoring, and an improved user interface.
This initiative marks a shift for Ripple, which has primarily focused on its payment settlement business and the XRP cryptocurrency.
“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,” Aaron Slettehaugh, Senior Vice President of Product at Ripple, said in a statement shared with CNBC.
Just announced: Ripple launching CRYPTO CUSTODY STORAGE FOR BANKS.????????️????“Storing digital assets on behalf of clients.”???? pic.twitter.com/tbPi9YQfmV
— SMQKE (@SMQKEDQG) October 10, 2024
Custody Market Sees Rapid Growth
The custody market is growing quickly, with Ripple now entering a competitive field that includes established firms like Coinbase, Gemini, and Fireblocks.
Custodians play a crucial role in the cryptocurrency ecosystem, safeguarding private keys needed for accessing digital assets. They also facilitate payments, trading, and ensure compliance with regulatory requirements.
Ripple claims that custody is one of its fastest-growing sectors, with Ripple Custody reporting over 250% customer growth year-over-year and operations in seven countries. Major clients include HSBC and DBS Bank.
Additionally, Ripple plans to enable clients to tokenize real-world assets, such as currencies and commodities, on its XRP Ledger.
Last year, Ripple acquired Metaco, a firm specializing in crypto storage solutions, and Standard Custody & Trust Company, to enhance its custody offerings.
This article was written by Tareq Sikder at www.financemagnates.com.
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