- With over 10% of global assets projected to be tokenized by 2030, Ripple Custody aims to cater to this shift by offering scalable infrastructure.
- Ripple Custody supports tokenized securities, governance enhancements, sub-custodian networks, and liquidity solutions.
Ripple recently predicted that the international custody services market, at an estimated $41 billion as of 2023, is set to top $100 billion by 2033. Behind the growth of the industry lies the institutional adoption of digital assets, driving financial service providers to increase the security of their custody solutions.
Ripple Calls For Institutional Shift Toward Advanced Custody Solutions
With the rising demand, institutions are looking for custody services that are more than just storage. They need high-level security, compliance with global regulations, and seamless integration with trading infrastructure. Thus, crypto custodians like Ripple Custody are looking to meet these expectations and have to provide round-the-clock accessibility while maintaining institutional-grade safeguards.
Ripple believes that custodians play a critical function in financial markets in the holding and management of assets. Since blockchain technology is shifting finance, traditional custodians have to adapt to incorporate tokenized assets. More than 10% of the assets globally- including stocks, bonds, ETFs, real estate, and carbon credits-will be tokenized by 2030. This also means that the growth of custody solutions that could cater to the complexity of digital asset management needs is also accelerating.
Moreover, digital assets run continuously 24/7 and hence need custodians with scalable, high-performance infrastructure. These must be compatible with several layer-1 blockchains, enable high transaction throughput, and give direct access to liquidity providers. The ability to adapt to emerging global regulations will be another big challenge that calls for a strong governance framework. Here, Ripple expects to play a huge role in smoothening the process.
Last month, as per our previous report, Germany’s leading DZ Bank introduced a platform for managing crypto securities, leveraging a collaboration with Ripple Custody. This partnership allows DZ Bank to offer robust wallet management and advanced blockchain analytics to its clients
Latest Emerging Use Cases In Crypto Custody
Institutions that invest in institutional-grade solutions are able to reach emerging opportunities within the digital asset space. For instance, Ripple Custody has offered customizable security and control mechanisms, allowing institutions to safely keep private keys and deploy tailored custody models, as indicated in our previous discussion. According to Ripple, new crypto custody use cases include:
- Tokenized Securities & Digital Asset Custody: Storage solutions for institutional investors, including tokenized stocks, bonds, and real-world assets.
- Governance & Compliance Enhancements: Advanced regulatory frameworks for easy compliance with jurisdictional needs.
- Sub-Custodian Networks: Partnering with global custodians to extend the service footprint and reach distribution.
- Liquidity Access & Staking Solutions: Direct integrations with exchanges, lending platforms, and liquidity providers.
Whilst, with the increasing institutional acceptance of digital assets, custodians will have to innovate in their approaches for competitiveness. Hence, Ripple Custody has expanded operations in 20 regulatory jurisdictions with an integrated offering aimed at the smooth management of digital assets. It decreases the cost of operation, boosts security, and also provides regulatory compliance, but most importantly, unlocks new revenue streams for financial institutions.
