Ripple, a U.S.-based blockchain startup, announced a significant expansion of its crypto custody business, introducing new services aimed at helping banks and financial technology firms securely store digital assets for their clients. Under its Ripple Custody division, launched last year, the company is now offering a range of features designed to enhance the storage and management of cryptocurrencies.
The new services include pre-configured operational and policy settings, integration with Ripple’s XRP Ledger blockchain platform, enhanced anti-money laundering (AML) monitoring to ensure compliance, and an improved user interface. This expansion marks Ripple’s efforts to diversify beyond its core payment settlement business, Ripple Payments, which enables banks to exchange updates on the movement of funds via blockchain technology.
The crypto custody sector is rapidly growing, with custodians playing a critical role in safeguarding the private keys required to access digital assets and authorize transactions. Custodians also help manage payments, settlements, and regulatory compliance. The market for crypto custody is projected to exceed $16 trillion by 2030, driven by increasing demand for secure and scalable solutions to manage digital assets.
Ripple’s Custody division has seen rapid growth, with customer numbers increasing by over 250% year-over-year. The division now operates in over 20 countries and counts major institutions such as HSBC, Societe Generale, and DBS among its clients. The company is betting on the future of tokenized real-world assets, including fiat currencies, commodities like gold and oil, and real estate, which can be traded on its XRP Ledger.
By integrating with the XRP Ledger, Ripple Custody clients will also have access to Ripple’s decentralized exchange, allowing for fast and low-fee trading of digital assets without the need for intermediaries. The company’s broader vision includes enabling its customers to tokenize real-world assets, enhancing the utility of its blockchain infrastructure for institutional clients.
This expansion follows Ripple’s acquisition of Metaco in 2022, a company specializing in crypto custody services, and Standard Custody & Trust Company earlier this year. Despite ongoing legal battles with the U.S. Securities and Exchange Commission over the classification of its XRP cryptocurrency, Ripple remains focused on growing its presence in the rapidly evolving crypto market, particularly in the area of digital asset custody.
READ MORE: