Ripple launches crypto custody services for banks and fintech companies

Ripple is taking a big step in the crypto market by launching crypto-custody services for banks and fintech companies, the American news channel CNBC reports. This expansion is part of a broader strategy by Ripple to further develop its crypto-custody branch.

Ripple expands with crypto custody

With the new services, Ripple offers a wide range of features including pre-configured operational and policy settings. These services are supported by the XRP Ledger platform, Ripple’s proprietary blockchain. This platform ensures efficient integration and risk management in the field of anti-money laundering practices, so that customers comply with regulations. In addition, the user experience has been improved with a new, simplified interface.

Ripple is best known for its token XRP and the RippleNet payment network. RippleNet, a blockchain-based messaging platform, allows banks to share money transfer updates within a decentralized network. With the expansion into crypto custody, Ripple is now entering a new, growing market, in which companies such as Coinbase and Gemini are already active. For example, Coinbase acts as a custody service for Bitcoin ETFs.

Growth in the custody sector

Custody services are crucial in the crypto market because they securely store private keys – the codes that provide access to crypto wallets. In addition to storage, these services also play a role in payments, commerce and regulatory compliance. Ripple also expects rising demand for tokenizing real assets (RWA), such as currencies, commodities and real estate. The XRP Ledger makes it possible to trade these assets faster and cheaper thanks to the decentralized structure of the platform.

Ripple’s new focus is no surprise. Last year, Ripple acquired Metaco, a company specialized in crypto storage. Recently, Ripple further strengthened its position with the acquisition of Standard Custody & Trust Company.

Ripple’s growth in the crypto-custody sector is impressive. This year the number of customers has already increased by 250%, with big names such as HSBC and DBS. Ripple appears to play an important role in the institutional adoption of crypto.