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U.S. blockchain startup Ripple made a big move into cryptocurrency custody on Thursday, launching a new service designed to help banks and financial technology companies store digital assets on behalf of their customers.
The San Francisco-based company told CNBC it is rolling out a suite of features that will allow its banking and fintech clients to retain and maintain digital tokens – as part of a broader push into custody, which Ripple recently launched An emerging business in Ripple’s custody arm.
These features include pre-configured operational and policy settings, integration with Ripple’s XRP Ledger blockchain platform, monitoring anti-money laundering risks to maintain compliance, and a new user interface that is easier to use and engage with.
The move will help Ripple, known primarily for the XRP cryptocurrency and its RippleNet platform, diversify beyond its core payments settlement business. RippleNet is a messaging platform based on blockchain (the technology that powers cryptocurrencies such as Bitcoin) that allows banks to share the latest information on the status of fund flows across a globally decentralized network.
Thursday’s development marks Ripple’s first major move to consolidate its custody offerings under one brand, Ripple Custody, and compete with a range of companies already offering products and services in the space, including Coinbase, Gemini and Fireblocks.
custodian
Custody is an emerging but rapidly growing area of digital assets. Custodians play a key role in the cryptocurrency market, helping customers protect private keys, which are alphanumeric codes needed to unlock digital assets and authorize transactions.
Custodians don’t just store cryptocurrencies. They also help with payments and settlements, transactions, and ensure regulatory compliance with global digital currency laws. It is predicted that the cryptocurrency custody market will reach at least US$16 trillion by 2030. Boston Consulting Group.
Ripple said that custody is one of the fastest-growing areas for the new company. Ripple Custody’s customer growth this year has increased by more than 250% year-on-year, and its operations span seven countries. The company’s clients include HSBC, the Swiss branch of BBVA, Société Générale and DBS Bank, among others.
Betting on a future in which more and more real-world assets will be traded as digital tokens, Ripple says it will allow customers of its custody service to tokenize real-world assets — think fiat currencies, gold and oil, among other commodities Commodity or real estate – by using the XRP ledger.
Ripple said the integration with its XRP Ledger technology will give the company access to its own native decentralized exchange, a platform that can help match buyers and sellers of a range of digital assets without any middlemen involved, allowing for faster, Low-fee transactions.
Aaron Slettehaugh, senior vice president of product at Ripple, said in a statement shared with CNBC on Thursday: “With new features, Ripple Custody is expanding its capabilities to better serve the high-growth crypto industry through secure and scalable digital asset custody. Currency and fintech businesses.
Last year, Ripple acquired Metaco, a company that helps other entities store and manage cryptocurrencies, to boost its nascent cryptocurrency custody business. The company also acquired another crypto custody company, Standard Custody & Trust Company, this year to further strengthen its efforts.
Ripple’s diversification acquisition comes at a fragile time for XRP. Last week, the price of the XRP cryptocurrency fell sharply after the U.S. Securities and Exchange Commission appealed the 2023 court ruling. Not considered a security When sold to retail investors.
Ripple, the largest holder of XRP tokens, has long been battling the U.S. Securities and Exchange Commission (SEC) over accusations that it sold the cryptocurrency through illegal securities offerings. Ripple denies that cryptocurrency should be considered a security.
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