A workshop organized by Ripple and the Blockchain Association of Singapore spotlighted the role of custody in the adoption of stablecoins.
Custody as the Foundation of Stablecoin Growth
Ripple's recent workshop highlighted that custody is becoming a foundational element for expanding the adoption of stablecoins. According to Ripple's 2025 Report, 71% of financial institutions in the Asia-Pacific region have increased confidence in digital assets, but only 30% currently utilize custody solutions. This underscores the importance of custody as a critical support structure for the growth of stablecoins in trade finance, liquidity management, and payments.
Hybrid Custody Models in Institutions
Industry participants agreed that custody is now a compliance-by-design infrastructure enabling regulated issuance and redemption of stablecoins. Providers of digital payment tokens in Singapore are required to segregate client assets and maintain strict internal controls. Various custody models are being implemented, including self-custody for control or third-party custodians for scalability, both requiring rigorous due diligence.
Singapore's Role in Tokenization and Stablecoins
Singapore is strengthening its position as a leader in digital assets with initiatives like Project Guardian and the Global Layer One (GL1) program aimed at creating blockchain infrastructure for tokenized markets. The XRP Ledger is positioned as a compliance-oriented blockchain that facilitates stablecoin usage while enabling the tokenization of real-world assets.
The Ripple workshop emphasizes that custody plays a key role in expanding the use of stablecoins by ensuring compliance with regulations and mitigating institutional risks.
