Ripple will broaden the reach of its newly launched Ripple Custody platform to provide digital asset storage services for financial institutions.
The crypto firm’s leadership told CNBC that its custody platform is its fastest-growing segment, with year-over-year customer growth exceeding 250%. Ripple Custody now operates in over 20 countries.
The new custodial services will include integration with Ripple’s XRP Ledger blockchain platform, anti-money laundering measures, and a streamlined user interface. Additionally, Ripple said customers can use the platform to tokenize assets and trade them on XRP Ledger.
“Despite the challenges Ripple has faced over the last several years in taking regulators head on, Ripple has focused on the bigger picture,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “Rather than focusing on token valuation, they have continued to build relationships, participate in pilot projects involving CBDCs or tokenization, and they continue to build out projects.”
Pressing Forward
Ripple is moving forward after a series of highly publicized legal battles with the U.S. Securities and Exchange Commission. The SEC first sued Ripple four years ago its flagship XRP token, alleging that the token is a security and Ripple is an unregistered securities broker.
A judge ruled in Ripple’s favor last year in what was hailed as a landmark victory for the crypto industry, but the SEC recently announced its intentions to appeal the decision. Ripple responded that it will cross-appeal the case in an effort to stay ahead of the regulator.
Increasing Institutional Investment
While Ripple is at the forefront of this issue, the entire crypto and digital assets industry has come under scrutiny in the U.S. Still, crypto and digital assets technologies have quickly emerged as key innovations driving the financial industry, and institutional investment is expected to continue growing.
“As a result of the company’s efforts, Ripple provides real value to their clients in both traditional finance and crypto native industries,” Hugentobler said. “The digital asset industry is so fast paced and constantly evolving, and Ripple has demonstrated over and over again that it has what it takes to be a leader in the space, by continuing to innovate and deliver value.”