Ripple has significantly expanded its footprint in the crypto custody sector with the launch of new services aimed at banks and financial technology companies. The San Francisco company announced its latest offerings on Thursday, detailing a range of features to assist financial institutions in securely storing and managing digital assets for clients. These new services fall under the company’s Ripple Custody division, which was established last year.
Ripple’s latest initiative encompasses pre-configured operational and policy settings, seamless integration with its XRP Ledger blockchain platform, and enhanced compliance monitoring for anti-money laundering risks. A new user-friendly interface is also being introduced to simplify engagement for Ripple’s banking and fintech customers.
Traditionally recognised for its XRP cryptocurrency and the Ripple Payments platform, Ripple’s venture into crypto custody represents a deliberate shift towards diversifying its core business beyond payment settlements. The Ripple Payments platform utilises blockchain technology to enable banks to communicate updates on money movements within a global distributed network.
The launch marks Ripple’s first comprehensive move to consolidate its custody offerings under the Ripple Custody brand, positioning itself to compete with established players like Coinbase, Gemini, and Fireblocks. The firm is banking on the growing importance of custodians in the digital asset sector, where they play a crucial role in safeguarding private keys, facilitating payments and settlements, enabling trading, and ensuring compliance with international regulations on digital currencies.
The digital asset custody market is projected to grow rapidly, potentially reaching a valuation of at least $16 trillion by 2030, according to the Boston Consulting Group. Ripple has experienced impressive growth in this area, with Ripple Custody reporting a 250% increase in customer numbers year-over-year, now operating in over 20 countries. The firm’s client roster includes major institutions such as HSBC, BBVA Switzerland, Societe Generale, and DBS.
Anticipating an increase in the tokenisation of real-world assets, Ripple intends to enable its custody clients to digitise assets such as fiat currencies, commodities, and real estate through the XRP Ledger. The integration with the XRP Ledger will also provide access to Ripple’s decentralised exchange, facilitating the trading of digital assets with minimal fees and without intermediaries.
Aaron Slettehaugh, Ripple’s Senior Vice President of Product, commented: “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.”
The firm’s expansion into custody services was bolstered by its acquisition of Metaco last year, followed by the purchase of Standard Custody & Trust Company earlier this year. These moves underscore Ripple’s strategy to solidify its presence in the custody market.
