Ripple Launches Crypto Storage Platform to Support Banks in Diversification

The San Francisco-based company told CNBC that as part of a larger push into custody, a nascent business for Ripple under its recently founded Ripple Custody division, it is launching a host of capabilities to enable its banking and fintech clientele to retain and preserve digital tokens.

As part of a larger push into custody, a fledgling market for Ripple under its recently established Ripple Custody division, the San Francisco-based company told CNBC that it is launching a plethora of capabilities to enable its banking and fintech clientele to retain and preserve digital assets.

Pre-configured operational and policy settings, interaction with the blockchain platform of Ripple (XRP Ledger), monitoring of anti-money laundering threats to ensure compliance, and an easier-to-use and more engaging new user interface are some of these features.

With this move, Ripple—best known for its RippleNet platform and the cryptocurrency XRP—will be able to expand its company beyond payment settlement. RippleNet is a messaging platform that enables banks to share information on the status of money flows in a global, distributed network. It is built on blockchain technology, the same technology that powers cryptocurrencies like bitcoin.

With the launch of Ripple Custody on Thursday, the company made its first major attempt to unify its custody solutions under a single brand. Coinbase, Gemini, and Fireblocks are just a few of the established players in this market.

Maintainer

The field of custody is new to digital assets but is expanding quickly. In order to enable access to digital assets and approve transactions, clients need private keys, which custodians help clients protect. Custodians are important players in the cryptocurrency market.

Custodians do more than merely hold crypto. They also support trading, payments and settlements, and regulatory compliance with international regulations pertaining to digital currencies. The Boston Consulting Group projects that the market for cryptocurrency custody will grow to at least $16 trillion by 2030.

According to Ripple, custody is one of the business segments that is expanding the fastest for the startup. Ripple Custody, which operates in seven countries, saw a year-over-year increase in customers of more than 250% this year. Among its clients include HSBC, DBS, Societe Generale, and the Swiss division of BBVA.

In an attempt to capitalize on the growing likelihood that real-world assets could one day be marketable as digital tokens, Ripple announced that users of its custody services would be able to tokenize real-world assets through the use of XRP Ledger, including fiat currencies and commodities like gold, oil, and real estate.

According to Ripple, companies will have access to its own native decentralized exchange through the integration with its XRP Ledger technology. This platform facilitates the matching of buyers and sellers of various digital assets without the need for middlemen, allowing for faster, lower-cost trade.

Senior vice president of product at Ripple, Aaron Slettehaugh, stated in a statement provided to CNBC on Thursday that “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.”

In an effort to strengthen its fledgling crypto custody business, Ripple purchased Metaco, a company that assists other businesses with managing and storing their cryptocurrency, last year. To support itself even further this year, the company bought Standard Custody & Trust Company, another cryptocurrency custody provider.

The timing of Ripple’s diversification proposal is problematic for XRP. The U.S. Securities and Exchange Commission filed to appeal a 2023 court decision that the token should not be treated as a security when sold to regular investors, which caused the price of the cryptocurrency XRP drop last week.

Ripple, the biggest owner of XRP currencies, has been battling the SEC for a while now over claims that it sold the cryptocurrency in an unauthorized securities offering. Ripple contests that its cryptocurrency qualifies as a security.