Ripple has launched Ripple Custody, a new division that provides crypto storage services tailored for banks and fintech companies. This initiative marks Ripple’s entry into the custody market, enabling financial institutions to securely store and manage digital assets on behalf of their clients.
Competing in the Crypto custody market
Ripple Custody introduces a range of features designed to meet the needs of institutional clients. These include pre-configured settings for ease of use, comprehensive anti-money laundering risk monitoring, and seamless integration with the XRP Ledger. The user-friendly interface enhances the experience for banks and fintechs, placing Ripple in direct competition with established players such as Coinbase, Gemini, and Fireblocks.
The crypto custody market is expanding rapidly. It encompasses storing digital assets and services related to payments, settlements, trading, and compliance with global regulations. According to the Boston Consulting Group, this market could reach a valuation of $16 trillion by the decade’s end, highlighting the growing demand for secure crypto storage solutions.
Significant growth and major clients
Ripple has reported a remarkable 250% increase in customer activity related to its custody services. The company operates in seven countries and has secured partnerships with major financial institutions, including HSBC, BBVA’s Swiss branch, Societe Generale, and DBS. These relationships underscore Ripple’s commitment to serving the needs of large-scale financial entities in the evolving digital asset landscape.
Ripple’s strategy anticipates increased tokenization of real-world assets such as fiat currency, commodities, and real estate. The XRP Ledger is designed to facilitate this trend, positioning Ripple as a critical player in the tokenization space.
Strategic acquisitions and prospects
Last year, Ripple acquired Metaco, a company specializing in crypto storage solutions for businesses, to strengthen its presence in the custody market. This acquisition was followed by the purchase of Standard Custody & Trust Company, another firm focused on custody services. These strategic moves enhance Ripple’s capabilities and expand its offerings in the digital asset space.
Despite ongoing legal challenges stemming from the SEC’s appeal of a court ruling in their longstanding case, CEO Brad Garlinghouse remains optimistic about the future. He expressed confidence in the potential approval of a spot XRP exchange-traded fund (ETF) in the U.S. market. Recently, Canary Capital submitted an application for such an ETF, which would provide investors with exposure to XRP without the need to purchase or hold the asset directly.
The proposed ETF’s net asset value will be based on the CME CF Ripple-Dollar Reference Rate. While CSC Delaware Trust Company will act as the trustee, the identity of the custodian for the ETF remains unspecified. Following the approvals of multiple Bitcoin and Ethereum ETFs, Garlinghouse believes it is only a matter of time before XRP receives similar recognition in the market.
Ripple’s expansion into crypto custody services positions it as a formidable player in the digital asset sector. As institutions seek secure and compliant solutions for managing their crypto assets, Ripple’s offerings may play a pivotal role in the evolving financial services landscape.