Ripple has launched new crypto custody services for banks and fintech firms, marking an expansion into digital asset storage.

Ripple Enters the Crypto Custody Market

Ripple's new crypto custody service allows financial institutions to securely store blockchain tokens in compliance with modern regulations. The service operates through the XRP Ledger, providing instant access to a decentralized exchange with low fees. Aaron Slettehaugh, Ripple's Senior Vice President of Products, stated in a CNBC interview: 'With new features, Ripple Custody is expanding its capabilities to better serve high-growth crypto and fintech businesses with secure and scalable digital asset custody.'

New Features and Tokenization Opportunities

In addition to secure storage, Ripple Custody provides tools to tokenize real-world assets such as fiat currencies, commodities, and real estate. The XRP Ledger facilitates the tokenization and trading of these assets. Ripple highlights over 250% customer growth this year, with major institutions like HSBC, Societe Generale, and DBS as clients.

Challenges and Competition in the Custody Market

Despite its growth, Ripple faces competition from other custody providers like Coinbase and Gemini. Ripple leverages its unique XRP Ledger integration and tokenization capabilities. The company emphasizes compliance with global regulatory standards for secure and regulated cryptocurrency storage. For instance, Ripple's native token is currently trading at $0.5279, according to Coinmarketcap, with a 0.82% decrease in the past 24 hours.

Ripple's foray into the crypto custody sector showcases its commitment to diversifying services in the rapidly evolving digital asset market.