[NEWS] Ripple launches bank-grade crypto custody service

American blockchain company Ripple announced on the 10th that it will fully enter the cryptocurrency custody service business.

The service will help banks and financial technology companies store crypto assets on behalf of their clients, and the expansion of new functions makes the custody service bank-grade. It will expand the set of features that allow bank and fintech clients to store and manage digital tokens.

This is one of Ripple's broader efforts into custody, a new business launched by Ripple under the Ripple Custody division established last year.

Last year, Ripple acquired Swiss-based cryptocurrency custody provider Metaco for $250 million. In February of this year, it reached an agreement to acquire Standard Custody & Trust, and was preparing to offer this new service.

The new features include pre-configured operational and policy settings, integration with Ripple's XRP Ledger, monitoring of anti-money laundering risks to maintain compliance, and a new user interface that is easier to use and engage with.

These moves diversify Ripple beyond its core payments business. Ripple Payments is a blockchain-based messaging platform that allows banks to share updates on the status of funds transfers within a global decentralized network.

This development is significant for Ripple as it consolidates its custody services under one brand, Ripple Custody, to compete with a number of companies already operating in this space, including Coinbase and Fireblocks.

The burgeoning custody market

Custodians do more than just store crypto assets. They also help comply with international laws regulating payments, settlements, transactions, and digital currencies.

Boston Consulting Group predicts that the crypto custody market will reach $16 trillion by 2030.

Ripple Custody has seen a 250% increase in clients this year compared to last year, and operates in more than 20 countries. Clients include HSBC, BBVA's Swiss branch, Societe Generale, and DBS.

Aaron Slettehaugh, senior vice president of product at Ripple, said in a statement, "With these new features, Ripple Custody will provide secure and scalable digital asset custody capabilities and expand our capabilities to better serve the fast-growing crypto and fintech companies."

Reference: Ripple
Image: Shutterstock

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