San Francisco-based fintech firm Ripple is launching a new suite of crypto storage services designed to help banks and financial technology businesses securely store and manage crypto assets.
Ripple Forays Into Crypto Custody
According to CNBC, Ripple is set to introduce a slew of features to enable its banking and fintech clients to hold and maintain digital tokens. The move is part of a bigger push to broaden the reach of its budding business under its recently formed Ripple Custody subsidiary.
These features include integration with Ripple’s blockchain platform, the XRP Ledger, pre-configured operational and policy settings, and risk monitoring for Anti-Money Laundering compliance. It also comes with a new user interface that is much easier to use and engage.
The move will allow Ripple to diversify its offerings beyond its core payment settlement business. Ripple is widely known for its RippleNet platform, a payment network focused on quick, cross-border transfers between financial institutions.
In an official statement on Oct. 10, Ripple’s senior vice president of product, Aaron Slettehaugh, stated that the new features extend Ripple Custody’s functionalities to better serve banks and fintechs with scalable and safe digital asset custody.
The firm also noted that custody is one of its fastest-growing businesses. Its custody division registered 250% year-on-year customer growth and currently operates in at least seven countries.
Under the Ripple Custody brand, the company also intends to let its clientele tokenize real-world assets using the XRP Ledger. Clients will also be given access to XRPL’s native decentralized exchange (DEX) for low-fee trading of any tokenized asset.
Taking On Giants Like Coinbase, Gemini
Ripple’s dive into the custody market follows its previous acquisitions of Metaco and Standard Custody & Trust Company, aimed at bolstering Ripple’s custody capabilities.
Ripple’s expansion positions the company against well-established crypto custody firms, projected to surpass $16 trillion by 2030. Ripple Custody competes with many companies currently offering custody, including Coinbase, BitGo, Fireblocks, and Gemini.
Could XRP Finally Hit $1?
While Ripple makes further inroads into the mainstream arena, uncertainty following the SEC’s appeal earlier this month has weighed heavily on the XRP cryptocurrency.
Ergo, the price of XRP has been witnessing anemic performance below 60 cents. At press time, the token is changing hands for around $0.5344, a 0.9% leap on the day. Crypto watchers are now speculating whether XRP can push past the stiff resistance of $0.64 following the news of Ripple crypto custody. This level could act as a formidable hurdle, but if the bulls win, the token could potentially rally to the elusive $1 mark.
Apart from Ripple’s crypto custody push, the spot XRP exchange-traded fund (ETF) race is heating up after Canary Capital joined Bitwise in submitting S-1 filings to the U.S. Securities and Exchange Commission (SEC).
Market pundits believe a change in the SEC leadership or U.S. administration could hasten the approval of XRP ETFs and other crypto products.
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