Ripple News – Ripple’s Customer Growth: A 250% Surge in Crypto Custody Services
Ripple News – On Thursday, U.S. blockchain startup Ripple made a significant entry into the crypto custody sector, unveiling new services designed to assist banks and financial technology firms in securely storing digital assets on behalf of their clients. This initiative marks a crucial step for Ripple as it aims to diversify its offerings beyond its traditional payment settlement business.
New Features for Banks and Fintech Firms
The San Francisco-based company announced that it will launch a suite of features to enable its banking and fintech clientele to efficiently manage digital tokens. These features include pre-configured operational and policy settings, seamless integration with Ripple’s XRP Ledger blockchain platform, and enhanced monitoring capabilities to address anti-money laundering risks. Additionally, a newly designed user interface promises to improve user engagement and ease of use.
Consolidating Custody Products Under Ripple Custody
This development signifies Ripple’s first major move to consolidate its custody products under the newly formed Ripple Custody division. The company is positioning itself to compete against established players in the custody space, such as Coinbase, Gemini, and Fireblocks. As custodians play a vital role in the crypto market—safeguarding private keys and ensuring regulatory compliance—Ripple’s entry into this field is seen as a strategic expansion.
Growth Potential in Crypto Custody Market
The crypto custody market is rapidly expanding, with projections estimating it could reach at least $16 trillion by 2030, according to the Boston Consulting Group. Ripple has reported that custody services are one of the fastest-growing areas within its business, boasting over 250% year-over-year customer growth this year and currently operating in seven countries. Notable clients include HSBC, the Swiss arm of BBVA, Societe Generale, and DBS.
Tokenizing Real-World Assets
Anticipating a future where more real-world assets become tradable as digital tokens, Ripple plans to enable customers to tokenize assets like fiat currencies, commodities such as gold and oil, or real estate using the XRP Ledger. This integration offers firms access to Ripple’s native decentralized exchange, allowing for faster, low-fee trading without intermediaries.
Strengthening Custody Capabilities
“Ripple Custody is expanding its capabilities to better serve high-growth crypto and fintech businesses with secure and scalable digital asset custody,” said Aaron Slettehaugh, senior vice president of product at Ripple, in a statement shared with CNBC. Last year, Ripple acquired Metaco, a company that specializes in helping entities store and manage their cryptocurrencies, to bolster its custody offerings. Additionally, Ripple acquired Standard Custody & Trust Company this year to further enhance its custody business.
Ripple’s Challenges Amid Regulatory Scrutiny
Ripple’s diversification efforts come at a challenging time for XRP. Last week, the price of XRP plummeted following the U.S. Securities and Exchange Commission‘s decision to appeal a 2023 court ruling that stated the token should not be classified as a security when sold to retail investors. As the largest holder of XRP, Ripple has been embroiled in a legal battle with the SEC over allegations of selling the cryptocurrency in an illegal securities offering, which Ripple firmly denies.
FAQs about Ripple’s New Crypto Custody Services
What are Ripple’s new custody services?
Ripple has launched a new suite of crypto custody services aimed at assisting banks and financial technology firms in securely storing digital assets on behalf of their clients. These services include features like pre-configured operational settings, integration with Ripple’s XRP Ledger, and enhanced anti-money laundering (AML) monitoring capabilities. The goal is to provide a comprehensive solution for managing and safeguarding digital tokens while ensuring compliance with regulatory requirements.
Why is Ripple entering the custody market?
Ripple is entering the custody market to diversify its offerings beyond its core payment settlement business, which is primarily focused on the XRP cryptocurrency and the RippleNet platform. By establishing a presence in the custody space, Ripple aims to tap into a rapidly growing market projected to reach at least $16 trillion by 2030, according to the Boston Consulting Group. This move allows Ripple to cater to the increasing demand from banks and fintech companies for secure digital asset management solutions.
Leave a comment