Ripple Labs filed a trademark application for 'Ripple Custody', indicating potential plans to enter the growing crypto custody market.
Ripple's New Trademark Application
Ripple Labs has filed a trademark application for 'Ripple Custody'. The application outlines various use cases, including custodial services for storing and managing cryptocurrencies for financial purposes. This follows Ripple's recent launch of its custody service in October 2024, aiming to diversify its revenue streams.
Role of Crypto Custody Services
Crypto custody services are crucial for safeguarding digital assets for individuals and institutions, mitigating risks like private key loss and data breaches. Demand for these services surged, especially after the approval of exchange-traded funds (ETFs) in the U.S. in 2024. Major players in this space include companies like Coinbase, Citi, and BNY Mellon.
Competition and Legal Challenges
Ripple might be preparing to launch a cryptocurrency wallet, as the filing mentions software for custody, transmission, and storage of various currencies. This could open a new revenue stream through transaction fees. Market participants like Ledger, Trezor, Trust Wallet, and Exodus already support XRP, so Ripple's potential entry into the wallet market would add competition. This move comes as the SEC's long-standing enforcement action against Ripple could be nearing its end.
Ripple Labs' trademark application for 'Ripple Custody' could signify the company's expansion into the crypto custody services market and preparation for launching its own cryptocurrency wallet, intensifying competition in the industry.
