Ripple Launches Custody Service to Compete in Growing Crypto Management Market

Ripple is making waves in the blockchain world. They just launched a new service for cryptocurrency storage and management, specifically designed for banks and fintech companies. This move expands their custodial services and could enhance other offerings in their ecosystem.

With this new venture, called Ripple Custody, the company is stepping beyond its core payment settlement services. It combines various custody products into one streamlined service, according to a report from CNBC.

Ripple already supports banks through RippleNet, a messaging platform that keeps them updated on global money transfers. Now, with Ripple Custody, they’re gearing up to compete with big names in crypto custody, like Coinbase and Gemini. They plan to stand out by offering features such as customized settings, policy controls, integration with the XRP Ledger, enhanced compliance monitoring, and a user-friendly interface.

“With new features, Ripple Custody is expanding its capabilities to better serve fast-growing crypto and fintech businesses with secure and scalable digital asset custody,” said Aaron Slettehaugh, Senior Vice President of Products at Ripple.

Besides custody services, Ripple will also help banks and fintech firms with payment processing, settlements, and trade facilitation. This is a smart move since the crypto custody market is booming. Boston Consulting Group predicts it could reach a whopping $16 trillion by 2030. Ripple is clearly looking to tap into the growing demand for secure management of crypto assets.

Ripple Custody will also allow clients to tokenize real-world assets, such as fiat currencies, gold, oil, and real estate on the XRP Ledger. They believe that tokenized RWAs will become tradable digital assets in the near future.

The XRP Ledger is a Layer-1 blockchain that supports XRP and other tokens. It facilitates payments, tokenization, decentralized finance (DeFi), central bank digital currencies (CBDCs), and stablecoins. This platform offers fast, low-cost, and secure transactions for both crypto tokens and RWAs. By integrating with the XRPL, companies can access Ripple’s decentralized exchange, enabling direct, low-fee trading between buyers and sellers.

Ripple Custody has seen impressive growth, with over 250% year-on-year customer increase, thanks to their acquisitions of Metaco and Standard Custody & Trust Company. This strengthens their custody capabilities and ensures they meet regulatory standards as more institutions explore tokenization. Ripple operates in multiple countries and has major banks like HSBC, BBVA, Societe Generale, and DBS on board. These institutions utilize Ripple’s regulated custody services along with Zodia Custody through Metaco. Their focus on tokenization may also boost their CBDC infrastructure, potentially leading to CBDCs that are fully backed by tokenized real-world assets.

Additionally, Ripple is gearing up to enter the stablecoin market with their product, Ripple USD (RLUSD), which is currently in beta testing. While RLUSD shows promise, it will face stiff competition in an already crowded stablecoin space.