Ripple Expands Digital Asset Infrastructure with New Custody Service Features
Ripple, a leading provider of digital asset infrastructure, has introduced new functionality to its custody service, offering crypto businesses "bank-grade" technology for securing digital assets. This move comes as the company seeks to bring the benefits of advanced custody technology to fintechs and crypto businesses, which are expected to play a significant role in the growing cryptocurrency market.
New Features and Partnerships
The new features include integration with the XRP Ledger, whose developers went on to help found Ripple. This integration expands liquidity through the provision of XRPL-based tokens and a native decentralized exchange (DEX), allowing companies to tokenize and manage real-world assets (RWAs) as well as other cryptocurrencies on XRPL. Additionally, the partnership between Ripple and Standard Custody & Trust Co., which was announced in February, will further enhance the company’s custody services.
Growing Demand for Digital Asset Infrastructure
The demand for digital asset infrastructure is expected to continue growing, with estimates suggesting that the amount of crypto assets custodied will reach at least $16T by 2030. Moreover, it is anticipated that 10% of the world’s GDP will be tokenized by 2030. As such, companies need secure, compliant, and flexible options for storing their cryptocurrencies.
Ripple’s Acquisition of Metaco
In a bid to expand its custody services, Ripple acquired Switzerland-based crypto custody provider Metaco for $250 million last year. This strategic move enabled the company to strengthen its position in the market and provide top-notch custody solutions to its clients.
XRP Ledger Integration
The integration with the XRP Ledger is a significant development, as it enables companies to access a wide range of features, including tokenization and decentralized exchange capabilities. The XRPL-based tokens will allow for seamless liquidity management, while the native DEX will provide a secure and compliant platform for trading cryptocurrencies.
Benefits of Ripple’s Custody Service
Ripple’s custody service is designed to offer "bank-grade" technology for securing digital assets. This means that companies can store their cryptocurrencies with confidence, knowing that their assets are protected by advanced security measures. Additionally, the company’s custody services are fully compliant with regulatory requirements, providing an added layer of assurance for clients.
Market Reaction
The introduction of new features to Ripple’s custody service has had a positive impact on the market, with XRP rising as much as 3.75% on Thursday, its biggest intraday gain since Sept. 29. The token has since pulled back but remains over 1.8% higher since midnight UTC.
Conclusion
Ripple’s expansion of digital asset infrastructure through its custody service is a significant development in the cryptocurrency market. With the integration with the XRP Ledger and the acquisition of Metaco, the company is well-positioned to provide top-notch custody solutions to its clients. As the demand for digital asset infrastructure continues to grow, Ripple is poised to play a leading role in the industry.
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