Banks can now diversify their offerings with Ripple's introduction of crypto storage services.

• Ripple announced that it is introducing new features to assist banks and fintechs in managing digital tokens as part of its broader initiative to expand into crypto custody.
• Ripple has recently consolidated its crypto custody services under a single brand called Ripple Custody.
• Ripple is mainly recognized for its XRP cryptocurrency and Ripple Payments, a decentralized interbank payment system.

On Thursday, Ripple, a U.S. blockchain startup, introduced new services to assist banks and financial technology companies in securely storing digital assets for their clients.

Ripple, a San Francisco-based company, announced that it is introducing new features to support its banking and fintech clients in managing digital tokens, as part of its expansion into the custody business through its Ripple Custody division, established in 2019.

The new version of the software includes pre-configured settings, integration with Ripple's blockchain platform, monitoring of anti-money laundering risks, and an easier-to-use interface.

Ripple can expand beyond its payment settlement business by leveraging its Ripple Payments platform, which utilizes blockchain technology to facilitate global, distributed updates on the status of money movements among banks.

Ripple has consolidated its custody products under the brand Ripple Custody and is now competing with companies like Coinbase, Gemini, and Fireblocks in the custody space.

Custodian

Digital assets have a burgeoning custodial space, with custodians playing a vital role in the crypto market by safeguarding clients' private keys, which are necessary to access digital assets and authorize transactions.

The crypto custody market is projected to reach at least $16 trillion by 2030, according to the Boston Consulting Group. Custodians not only store crypto but also assist with payments and settlements, trading, and ensuring compliance with global laws governing digital currencies.

Ripple Custody, a startup service, has experienced over 250% year-over-year growth in customer growth this year and operates in over 20 countries. Its clients include major financial institutions such as HSBC, the Swiss arm of BBVA, Societe Generale, and DBS.

Ripple predicts that an increasing number of real-world assets will be tokenized as digital tokens in the future, and its custody services will enable customers to tokenize assets such as fiat currencies, commodities like gold and oil, and real estate using the XRP Ledger.

Ripple stated that integrating with its XRP Ledger technology would grant companies access to its own native decentralized exchange, a platform that facilitates the trading of various digital assets directly between buyers and sellers without intermediaries for quicker, more cost-effective transactions.

Ripple Custody is enhancing its offerings with new features to better cater to high-growth crypto and fintech businesses, according to Aaron Slettehaugh, senior vice president of product at Ripple, as stated in a CNBC report on Thursday.

Ripple bought Metaco and Standard Custody & Trust Company to offer its own crypto custody services.

XRP's price plummeted after the SEC filed an appeal against a 2023 court ruling that deemed XRP a security when sold to retail investors.

Ripple, the largest XRP coin holder, has long fought the SEC over claims that it illegally sold the cryptocurrency as a security. Ripple argues that XRP should not be classified as a security.