Blockchain Startup Ripple Launches New Crypto Custody Services

Ripple, a U.S. blockchain startup, has announced the launch of new services aimed at assisting banks and financial technology firms with storing digital assets for their clients. These new services are part of Ripple’s broader push into custody, managed under its Ripple Custody division formed last year.

Custody Services Expansion

Custody services are a rapidly expanding sector within the digital asset space. Custodians play a crucial role in safeguarding private keys and ensuring regulatory compliance in the crypto market. The market for crypto custody is projected to grow to $16 trillion by 2030, according to the Boston Consulting Group.

Ripple’s Strategic Growth

Ripple’s move into custody marks a significant shift from its traditional payment settlement business. With its Ripple Custody division, the company aims to diversify and offer clients a range of features, including policy settings, integration with the XRP Ledger blockchain platform, and enhanced user interface.

Real-World Asset Tokenization

Ripple’s custody services will also facilitate the tokenization of real-world assets, such as fiat currencies, commodities, and real estate, using the XRP Ledger. This integration allows access to Ripple’s native decentralized exchange for faster, low-fee trading.

Regulatory Challenges

Ripple’s expansion into custody services comes amidst legal challenges, with the SEC recently appealing a court ruling regarding the classification of XRP. Despite these challenges, Ripple continues to innovate and grow its custody offerings to better serve the evolving needs of the crypto and fintech industries.