Ripple, the San Francisco-based blockchain startup, recently launched its crypto-custody solution for various banks and fintech players to store digital assets on behalf of their clients. This development comes as the Federal Reserve cracks down on several traditional banks that offer custody services to crypto firms.
Ripple Crypto Storage and Features
Ripple told CNBC that it will bring a range of features that will enable its banking and fintech customers to store digital assets through its crypto-custodial solution. This will be an emerging business for the firm as part of its newly formed Ripple Custody division. Last month in September, Brad Garlinghouse, CEO of Ripple, already gave a hint for this launch.
With the launch of the Ripple Crypto custody, the firm has ensured that it meets all regulatory requirements in this process. It includes pre-configured operational and policy settings along with integration with the Ripple XRP Ledger blockchain platform, which recently launched key updates.
Furthermore, to maintain compliance, the crypto-custody platform will monitor anti-money laundering risks, along with introducing a new user-friendly and engaging interface. This is a great move by the company to diversify beyond its payment settlement business of RippleNet. Aaron Slettehaugh, senior vice president of products at Ripple, spoke to CNBC:
“With new features, Ripple Custody expands its capabilities to better serve growing crypto and fintech businesses with secure and scalable digital asset custody.”
Take on giants like Coinbase, Gemini
Today’s announcement is one of the first moves by the blockchain startup to consolidate its crypto-custodial services under its newly formed brand of Ripple Custody, as it takes on the competition head-on with existing players like Coinbase, Gemini, etc.
Crypto custody businesses are still in their infancy, but are growing rapidly in the crypto space. Today, Coinbase serves some of the top clients like BlackRock to provide Bitcoin custody for the IBIT ETF. Now traditional banking players are getting in on it too with BNY Mellon acquiring a custody license last month.
Custodians are essential to the crypto market, providing secure storage for private keys. In addition to securing crypto, custodians help with payments, settlements, trading, and ensuring compliance with global regulations governing digital currencies.
The Boston Consultancy Group predicts that the crypto custody market will grow to $16 trillion by 2030. Ripple believes that custody is the fastest growing area with its custody platform already seeing 250% user growth this year.
The Ripple custody operates in seven countries with top clients such as HSBC, Societe Generale, the Swiss branch of BBVA and DBS as clients.
Integration with XRP Ledger
Ripple is also betting on the real assets (RWA) market and has stated that it will expand its custodial services to know different RWAs such as fiat, gold, oil and real estate using the XRP ledger.
Ripple has announced that the integration of its XRP Ledger technology will give companies access to its native decentralized exchange. Additionally, it will also allow buyers and sellers to trade various digital assets directly, without intermediaries, enabling faster transactions with lower fees.
To boost its crypto-custody business, Ripple has made key acquisitions. Last year, it acquired Metaco, a company specializing in crypto storage and management. This year, Ripple further expanded its efforts by acquiring Standard Custody & Trust Company, another crypto custody firm.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a solid understanding of financial markets. His interest in economics and finance led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his spare time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for your personal financial loss.
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