Ripple, the blockchain startup of San Francisco, said Wednesday it was launching a new business focused on providing crypto custody services to banks and financial-technology firms – its most significant expansion yet beyond its payment-settlement core business. The offering – under a new division, Ripple Custody – will help financial institutions securely store digital assets for their customers.
Advances custody services from Ripple include pre-set operational as well as policy settings, integration with the XRP Ledger blockchain platform, anti-money laundering risk monitoring in service to ensure compliance, and a user-friendly interface for better client engagement. This initiative also highlights Ripple’s strategic efforts to diversify its portfolio beyond the well-known XRP cryptocurrency and the RippleNet payment platform.
The launch of Ripple Custody now places it in competition with major players in the crypto custody market- Coinbase, Gemini, and Fireblocks. In this world of cryptocurrencies, assuring secure safekeeping of private keys as well as offering payment, settlements, and compliance services, the market is therefore expected to witness significant growths to reach up to $16 trillion by 2030, the Boston Consulting Group estimates.
Ripple reports that its custody arm is growing, with more than 250% year-over-year customer growth so far this year and operations across seven countries. The bank claims its custodial services clients include HSBC, BBVA’s Swiss division, Societe Generale, and DBS. Ripple is also moving forward with its plans to enable its custody customers to issue tokenized versions of real-world assets—such as fiat currencies, commodities, and real estate—on the XRP Ledger, allowing access to its decentralized exchange for cheap trading. The rollout comes at a challenging time for Ripple, whose price of XRP recently declined following the U.S. Securities and Exchange Commission appeal against a court ruling stating that the token is not a security for retail investors. Ripple, the largest holder of XRP, has consistently maintained that its cryptocurrency should not be classified as a security, navigating ongoing regulatory scrutiny.
