As per CNBC, Ripple made a significant move into crypto custody by launching services to help banks and fintech firms store digital assets. The San Francisco-based company revealed to CNBC that it is introducing various features, including pre-configured operational settings, integration with its XRP Ledger blockchain, anti-money laundering monitoring, and a new user-friendly interface. These services are part of Ripple’s expansion into the custody business under its new Ripple Custody division.

Known for its XRP cryptocurrency and RippleNet platform, Ripple is diversifying beyond its core payment settlement business. RippleNet is a blockchain-based messaging platform for banks to share global money transfer updates. This move marks Ripple’s first step in consolidating its custody offerings under one brand, competing with firms like Coinbase, Gemini, and Fireblocks.

Crypto custody is rapidly growing, with custodians safeguarding digital assets, handling payments, and ensuring compliance. The market is expected to reach $16 trillion by 2030. Ripple Custody has seen over 250% growth this year, operating in seven countries and serving clients like HSBC, BBVA, Societe Generale, and DBS.

Ripple plans to let custody clients tokenize real-world assets like currencies and commodities via XRP Ledger, which also provides access to its decentralized exchange for faster, low-fee trades. Ripple has also acquired Metaco and Standard Custody & Trust to bolster its custody services.

This expansion comes amid legal challenges for XRP, as the U.S. SEC appealed a 2023 ruling stating XRP is not a security when sold to retail investors. Ripple continues to dispute the SEC’s classification of XRP as a security.

Resources:

CNBC