Ripple expands offerings with crypto storage services for banks

Ripple has launched crypto storage services for banks and fintech companies by opening a new division called Ripple Custody.

This is part of a strategy to break into the custody market, allowing institutions to store and manage digital assets on behalf of their clients.

Ripple takes on Coinbase and Gemini in crypto custody

The new features include pre-configured settings, anti-money laundering risk monitoring, integration with XRP Ledger, and a more user-friendly interface. It puts Ripple in direct competition with top companies in crypto custody like Coinbase, Gemini, and Fireblocks.

Custody is a growing market. It’s not just about storing crypto, though. It also includes handling payments, settlements, trading, and compliance with regulations around the world. 

According to Boston Consulting Group, the crypto custody market could hit $16 trillion by the end of the decade. 

Ripple has already seen major growth in this area, reporting a 250% increase in customer activity for its custody services. Ripple Custody operates in seven countries and has big clients like HSBC, BBVA’s Swiss branch, Societe Generale, and DBS.

The company is also betting that more real-world assets (like fiat, commodities, and real estate) will be tokenized in the future. Its XRP Ledger is reportedly set up to handle that kind of tokenization.

Last year, Ripple acquired Metaco, a company specializing in crypto storage solutions for businesses. It followed that up this year by buying Standard Custody & Trust Company, another crypto custody firm.

After the SEC’s decision to appeal the ruling in the infamous legal battle between both parties, Ripple finds itself embroiled in an endless battle. However, CEO Brad Garlinghouse remains optimistic. He’s hopeful about getting a spot XRP exchange-traded fund (ETF) approved in the U.S.

Canary Capital recently filed an application that, if approved, will allow investors to get exposure to XRP without directly buying or holding.

The net asset value (NAV) of this ETF will be based on the CME CF Ripple-Dollar Reference Rate, and it will be managed by Canary. CSC Delaware Trust Company will be the trustee, but the custodian for the ETF hasn’t been named yet.

After several Bitcoin and Ethereum ETFs were approved, Garlinghouse believes it’s just a matter of time before XRP gets its own.