Ripple, a company known for providing digital asset infrastructure, has recently announced enhancements to its custody service. This new functionality aims to offer crypto businesses a “bank-grade” level of technology to secure their digital assets.
The company, closely associated with the XRP token, experienced a 3.75% increase in the token’s value on Thursday, marking its largest intraday gain in nearly two weeks according to Coindesk Indices data. This positive development comes on the heels of various updates within the company, including plans for an upcoming stablecoin launch and the resolution of the Ripple-SEC case.
One of the key features of Ripple’s custody service expansion is its integration with the XRP Ledger. This move not only expands liquidity by providing XRPL-based tokens but also introduces a native decentralized exchange (DEX). This DEX could potentially enable companies to tokenize and manage real-world assets (RWAs) in addition to other cryptocurrencies on the XRPL platform.
Ripple’s overarching goal with these enhancements is to bring the advantages of bank-grade custody technology to fintechs and crypto businesses. The company emphasized the growing importance of secure and compliant storage options for crypto assets, citing projections that the amount of custodied crypto assets could reach $16 trillion by 2030. Additionally, it is anticipated that 10% of the world’s GDP will be tokenized by the same year, underscoring the need for flexible and secure storage solutions.
To bolster its position in the custody space, Ripple made significant acquisitions, including the purchase of Switzerland-based crypto custody provider Metaco for $250 million in the previous year. In February, the company also finalized the acquisition of Standard Custody & Trust Co.
Following the announcement of these developments, XRP experienced a notable price increase, rising by 3.75% on Thursday. Although the token saw a slight pullback afterwards, it remained 1.8% higher since midnight UTC, surpassing the overall performance of the broader crypto market as indicated by the CoinDesk 20 Index.
Ripple’s strategic moves in expanding its custody service and integrating with the XRP Ledger demonstrate its commitment to providing advanced solutions for securing digital assets. As the crypto industry continues to evolve, the company’s focus on offering secure, compliant, and flexible custody options positions it well to meet the growing demands of businesses in this space.
