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 laundering
risk 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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