Ripple has launched enhanced features for its Ripple Custody service, aimed at assisting banks and fintech firms in securely storing digital assets on behalf of their clients. The latest developments include functionality for tokenizing real-world assets (RWA).
The San Francisco-based blockchain payments company has debuted a slew of new features for Ripple Custody, with the new XRP Ledger tokenization features that enable digital asset issuance and secure transfers directly from the Ripple platform. Clients will also have access to the XRPL’s native decentralized exchange (DEX) for low-fee trading of any tokenized asset.
In addition to tokenization features, Ripple has introduced improvements to the custody platform's usability and user interface, along with compliance integrations designed to meet the needs of global financial institutions. These updates include a transaction screening service and enhanced hardware security module (HSM) options, all aimed at fortifying security and compliance standards.
"Ripple’s custody technology offers a single platform for safeguarding and managing digital assets, designed with the security and compliance standards that top global banks and financial institutions have come to rely on," said Ripple SVP of Product Aaron Slettehaugh. "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."
This initiative is part of Ripple's strategy to broaden its custody division, consolidating its products under the unified brand of Ripple Custody. The move aims to enhance customer experience while providing them with mission-critical software infrastructure to secure, transfer, and settle various types of tokenized financial assets.
The custody sector is rapidly expanding within the digital asset landscape, with custodians playing a crucial role in helping clients safeguard private keys. As the digital asset economy continues to grow, the demand for secure and compliant custody solutions is becoming increasingly critical. According to a Boston Consulting Group (BCG) report, the amount of crypto assets held by custodians is expected to reach at least $16 trillion by 2030, and 10% of the world’s GDP is expected to be tokenized by then.
