Ripple launches crypto storage services for banks in bid to diversify
U.S. blockchain startup Ripple made a major foray into crypto custody on Thursday, launching new services aimed at helping banks and financial technology firms to store digital assets on behalf of clients.
The San Francisco-based company told CNBC it is debuting a slew of features to enable its banking and fintech clientele to keep and maintain digital tokens — as part of a broader push into custody, a nascent business for Ripple under its Ripple Custody division, which was formed last year.
These features include pre-configured operational and policy settings, integration with Ripple's XRP Ledger blockchain platform, monitoring of anti-money laundering risks to maintain compliance, and a new user interface that's easier to use and engage.
The move will help Ripple, which is primarily known for the XRP cryptocurrency and its Ripple Payments platform, to diversify beyond its core payment settlement business. Ripple Payments is a messaging platform based on blockchain — the technology that underpins cryptocurrencies such as bitcoin — which lets banks share updates on the status of money movements in a global, distributed network.
Thursday's development marks Ripple's first significant move to consolidate its custody products under one brand, Ripple Custody, and take on a slew of companies that already offer products and services in this space, such as Coinbase, Gemini, and Fireblocks.
Custody is a nascent but fast-growing space within the digital asset space. Custodians play a key role in the crypto market, helping clients safeguard private keys, which are the alphanumeric codes required to unlock access to digital assets and authorize transactions.
Custodians don't just store crypto. They also help with payments and
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