By Michael Scott
Ripple Labs enters the crypto custody market to offer secure storage, transfer, and settling of tokenized assets.
Ripple Custody is a foray that offers a secure platform for conventional, crypto, and fintech businesses. The Ripple Custody features a hardware security module (HSM) and transactions screen besides RWA tokenization.
The newly unveiled platform will leverage the XRP Ledger. It promises compliance services in the subsequent rollout by early 2025 to satisfy the evolving regulatory needs.
Ripple eyes enhanced its products despite the ongoing regulatory challenges as it battles charges from the Securities and Exchange Commission (SEC). Ripple has recently committed to strengthening its essential products and divisions, with the Ripple Custody launched to offer bank-grade technology customized for the digital economy.
Ripple Targets Role in the $16T Market
Ripple assures advanced security measures, transaction screening, and integration for RWA tokenization on the XRPL. The company’s president, Monica Long, considers Ripple Custody the de facto technology that biggest banks utilize. The executive lists banking giants Singapore’s DBS, BBVA, and Societe Generale Group as leading the uptake.
The crypto custody segment is projected to test US$16T in six years. Such awareness informs Ripple’s positioning as a critical player in the custody sector. Ripple projects tokenization of at least 10% of global GDP by 2030, thus necessitating providing secure and compliant solutions.
Product vice president Aaron Slettehaugh reiterated that Ripple Custody will integrate new features to expand capabilities towards better serving the digital assets entities and fintech businesses. Slettehaugh hails Ripple’s custody technology as offering a single platform to safeguard and manage digital assets. It deploys a unique design integrated with superior compliance standards that top-ranked banks and financial entities rely upon.
Canary Capital Joins Bitwise in XRP ETF Application
Ripple’s entry into the crypto custody coincides with increased uptake among institutions. Notably, Canary Capital revealed a bid for the spot XRP exchange-traded fund (ETF) submitted to the US Securities and Exchange Commission (SEC).
It marks the second XRP proposal this week following the October 3 filing by the ETF giant Bitwise. The filing by Canary Capital clarifies intentions to provide investors with indirect exposure to XRP. It aims to track XRP price in real-time via the CF Ripple Index on the Chicago Mercantile Exchange.
Canary Capital is a newly established crypto investment by Steven McClurg. McClurg also co-founded Valkyrie, a leading player in the asset investment management behind exchange-traded products (ETPs).
More Institutional Interest in XRP
The increasing institutional interest in the XRP ETF emerges despite the legal battles that Ripple Labs confronts. The company faces an appeal by the SEC challenging the federal judge ruling that ordered a $125M fine for failure to register institutional sales.
Ripple settled the $125M fine, though a portion of the $1.9B SEC pursued. Nonetheless, the Commission appealed to challenge the 2023 ruling where XRP programmatic sales were excluded from security classification.
Institutions appear to overlook the regulatory shackles as they increase their interest. Grayscale is among the digital assets giants attracted to Ripple, which is evident in the unveiling of the XRP Trust. It offers alternative exposure to the digital tokens underlying the XRP Ledger (XRPL).
FRNT Financial chief executive Stephane Oullette noted that ETF providers will closely monitor the regulatory landscape in the optimism of new products. The executive considers the uncertainty that institutions face regarding the approval despite the quest to broaden product offerings into the crypto-native landscape.
The developments undertaken by XRP have yet to play out in the XRP price. A glance at on-chain data shows the XRP hovers in the $0.5257 – $0.5411 range in the past 24 hours per CoinGecko data. At press time, XRP has a 1.3% intra-day gain to change hands at $0.5394. With its 24-hour trading volume now at $959.015 million, the XRP has a mild seven-day change in price at 0.70% per CoinGecko data.