Bitrabo Editorial
Ripple has recently introduced significant improvements to its Ripple Custody service, designed to provide top-tier crypto custody solutions to financial technology (fintech) enterprises and cryptocurrency companies. The upgrades feature integration with compliance mechanisms, a broader selection of hardware security modules (HSMs), capabilities for tokenizing tangible assets on the XRP Ledger (XRPL), pre-set policy frameworks, and enhancements to the user interface, as highlighted in their official announcement.
According to Aaron Slettehaugh, Senior Vice President of Product at Ripple, “Ripple’s custody technology delivers a comprehensive platform for the secure management of digital assets, tailored to meet the stringent security and compliance demands of global banks and financial organizations. These enhancements are aimed at better supporting the evolving needs of rapidly growing crypto and fintech firms with reliable and scalable asset custody.”
Enhancements to Ripple’s Custody Service
The revised service is equipped with tokenization functionalities for the XRPL, allowing enterprises to handle various assets such as cryptocurrencies, traditional currencies, and physical assets. This feature streamlines the processes for issuing and transferring digital assets directly through the platform.
Additionally, access to the XRP Ledger’s native decentralized exchange (DEX) allows for the incorporation of interchangeable XRPL tokens, creating avenues for new asset digitization and enhancing liquidity. Ripple emphasizes that, “With the inclusion of the native DEX on XRPL, businesses can trade assets effortlessly at minimal costs.”
A significant improvement includes a partnership with Elliptic for transaction monitoring services, enhancing real-time transaction oversight, risk evaluation, and adherence to established risk policies for regulatory compliance and trust-building. The press release indicates Ripple’s plan to offer further compliance services soon.
The platform now grants users the choice to utilize HSMs via their preferred cloud service providers, streamlining the onboarding and deployment process. In addition, an upgraded user interface has been designed for a more user-friendly experience, complemented by integrations with external identity services, allowing users to log in through their selected OAuth or OIDC systems.
Ripple Custody boasts a remarkable 250% growth in new clients year-over-year, signaling a rising demand for secure and compliant custody solutions for digital assets. This service is operational in significant financial markets, including the United States, Switzerland, Germany, France, the United Kingdom, Singapore, and Hong Kong, with notable clients such as BBVA Switzerland, Société Générale – FORGE, DBS, RULEMATCH, Archax, and Futureverse.
Industry analysts predict that the total crypto assets under custody could soar to at least $16 trillion by 2030, with expectations that 10% of the global GDP will be tokenized by that same year. Ripple aims to be a principal infrastructure provider in the digital asset landscape, offering services for the tokenization, storage, exchange, and movement of digital assets.
Operating in over 55 countries, Ripple has payout functionalities across more than 80 markets, holding upwards of 55 regulatory licenses and registrations globally. The previous year saw Ripple expand its custody capabilities through the acquisition of Metaco, and this year, it continued to advance in the custody sector with the purchase of Standard Custody & Trust Company.
New compliance features are set to roll out for select clients in December 2024, with broader access anticipated in early 2025. Additionally, pre-configured policy frameworks are expected to be available early next year, catering to the increasing demand for advanced digital asset management solutions.
As of the latest information, XRP is priced at $0.5275.