Blockchain payments company Ripple has launched digital asset custody services tailored for banks and fintech firms, expanding its business beyond traditional payment solutions. This move is aimed at capitalizing on the growing demand for secure crypto storage solutions among financial institutions.
Ripple Custody: A New Division for Digital Asset Storage
On October 10, CNBC reported that Ripple had unveiled new features designed to securely store and manage digital assets for its banking and fintech clients. This new service is part of a broader initiative to expand Ripple’s offerings through its newly created division, Ripple Custody, which consolidates all its custody services under a single brand.
Features and Integration with XRP Ledger
Ripple Custody includes several advanced features, such as integration with Ripple’s blockchain platform, the XRP Ledger. It also offers pre-configured operational and policy settings, anti-money laundering (AML) risk monitoring, and a user-friendly interface. These tools aim to ensure that institutions using Ripple Custody can manage digital assets efficiently while adhering to regulatory standards.
By moving into crypto custody, Ripple is diversifying beyond its well-known payment settlement services like RippleNet, which provides a distributed network for banks to track fund transfers. This strategic expansion helps Ripple position itself as a comprehensive digital asset service provider.
Growing Demand for Crypto Custody Services
With increasing interest from financial institutions in digital assets, the need for reliable crypto custody solutions is rising. These providers not only store cryptocurrencies securely by managing private keys but also assist institutions in trading and settling digital payments while ensuring compliance with digital asset regulations.
Ripple’s senior vice president of product, Aaron Slettehaugh, highlighted the company’s commitment to serving fintech businesses with scalable and secure custody options. “These new features significantly expand our capabilities to meet the needs of fintech firms,” Slettehaugh told CNBC.
Ripple Custody’s Global Reach and Growth
Ripple noted that its custody division has experienced rapid growth, with a 250% increase in business year-on-year. The division now operates in seven countries, underscoring its role as one of Ripple’s fastest-growing business areas.
