Ripple launches cryptocurrency storage service for banks to diversify
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US blockchain startup Ripple made a major foray into cryptocurrency custody on Thursday, launching new services aimed at helping banks and fintech companies store their assets. digital products on behalf of customers.
The San Francisco-based company told CNBC that it is launching a series of features to enable its banking and fintech clientele to hold and maintain digital tokens – as part of its push to broader custody, a fledgling Ripple business under the recently created Ripple Custody division. .
These features include pre-configured policy and activity settings, integration with Ripple’s XRP Ledger blockchain platform, anti-money laundering risk monitoring to maintain compliance, and a new user interface Easier to use and interact with.
The move will help Ripple, which is primarily known for its XRP cryptocurrency and RippleNet platform, diversify beyond its core payments business. RippleNet is a messaging platform based on blockchain – the technology underpinning cryptocurrencies such as bitcoin – that allows banks to share updates on the status of money movements within a global, distributed network.
Thursday’s development marks Ripple’s first major move to consolidate its custody products under one brand, Ripple Custody, and take on a slew of companies that have offered products and services in the space. this time, such as Coinbase, Gemini and Fireblocks.
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Custody is a young but rapidly growing space in the digital asset space. Custodians play a vital role in the cryptocurrency market, helping customers protect private keys, which are alphanumeric codes needed to unlock access to digital assets and authorize transactions.
Custodians don’t just store cryptocurrencies. They also support payments and settlements, transactions, and ensure regulatory compliance with global laws governing digital currencies. The cryptocurrency custody market is forecast to reach at least $16 trillion by 2030, according to Boston Consulting Group.
Ripple says custody is one of the fastest growing areas for the startup, with Ripple Custody posting more than 250% year-on-year customer growth this year and operating in seven locations. nation. It counts HSBC, the Swiss arm of BBVA, Societe Generale and DBS as clients.
Betting that more and more real-world assets will be tradable as digital tokens in the future, Ripple said it will allow customers of its custody service to tokenize assets in the real world – think fiat currencies, commodities like gold and oil or real estate – using the XRP Ledger.
Ripple said the integration with XRP Ledger technology will give companies access to their own decentralized exchange, a platform that helps connect buyers and sellers of a range of digital assets without any middlemen involved for faster, lower-fee transactions.
“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.” .
Last year, Ripple acquires Metacoa company that helps other entities store and manage their cryptocurrencies, aiming to boost its nascent crypto custody business. The company this year also acquired Standard Custody & Trust Company, another cryptocurrency custodian, to further enhance its efforts.
Ripple’s diversification bid comes at a difficult time for XRP. Last week, the price of the cryptocurrency XRP plummeted after the U.S. Securities and Exchange Commission filed an appeal of a 2023 court ruling that the token must are not considered securities when selling to retail investors.
As the largest holder of XRP coins, Ripple has long battled the SEC over allegations that it sold the cryptocurrency in an illegal securities offering. Ripple denies that cryptocurrencies should be considered securities.
