Ripple, a leader in digital asset infrastructure, has announced a significant update to its Custody service, targeting fintechs and crypto-native businesses. This update introduces crucial new features designed to enhance security and compliance.
A key addition is the integration of transaction screening services, partnering with Elliptic to enable real-time transaction monitoring and risk assessment. This feature will help customers meet regulatory requirements and build trust in their operations.
Additionally, Ripple Custody now offers expanded hardware security module (HSM) options, including AWS CloudHSM, which simplifies the onboarding and deployment process by allowing customers to use HSM on their preferred cloud provider.
The enhancements demonstrate Ripple’s commitment to providing bank-grade custody technology that meets the stringent security standards of global financial institutions.
XRPL Integration and Tokenization Capabilities
One of the biggest additions in the update is a new integration with the XRP Ledger (XRPL), greatly broadening Ripple Custody’s tokenization and asset management capabilities. It allows business to tokenise and manage a range of cryptocurrencies, fiat currencies, and real-world assets (RWAs).
Users can now facilitate digital asset issuance and secure transfers directly from the Ripple Custody platform. Furthermore, the integration provides seamless access to XRPL’s native decentralized exchange (DEX), allowing for efficient, low-fee trading of any tokenized asset.
This feature positions Ripple Custody as a comprehensive solution for businesses looking to explore new opportunities in asset digital representation and unlock liquidity in the evolving digital asset economy.
Operational Improvements and Market Growth
Ripple Custody has introduced several operational enhancements to improve usability and streamline processes for its customers. The update includes pre-configured operational and policy frameworks, simplifying the selection, deployment, and maintenance of the Ripple Custody platform.
The user interface has been revamped to be more intuitive, and new integrations with external identity providers allow users to log in via their preferred OAuth or OIDC-based systems, offering greater flexibility for enterprise customers. These improvements come at a time of significant growth for Ripple Custody, which has seen a 250% year-over-year increase in new customers.
The service is now offered across major global financial markets, including Switzerland, Germany, France, the United Kingdom, the United States, Singapore, and Hong Kong, serving top-tier banks, financial institutions, and crypto businesses worldwide.
Ripples Outlook and Further Speculations
Ripple’s latest update to its Custody service positions the company as a key player in the rapidly growing digital asset custody market. With projections suggesting that crypto assets under custody could reach $16 trillion by 2030, and expectations that 10% of the world’s GDP will be tokenized by the same year, Ripple is well-positioned to meet the increasing demand for secure, compliant, and flexible digital asset storage solutions.Â
The company’s extensive regulatory compliance, with over 55 licenses and registrations across various jurisdictions, further strengthens its position in the market.
While some features like new compliance integrations will be available to select customers in December 2024, with general availability in early 2025, and pre-configured policies will be rolled out early next year.