Ripple Custody: How the XRP Company Wants to Offer Services for Banks

Ripple is undergoing a transformation: for a long time, its own cryptocurrency XRP was almost the sole focus of its business model. But this year, Ripple has initiated a transformation with plans for its own stablecoin (RLUSD) and significantly expanded services. The company wants to win banks as customers, as explained in a blog post. Because banks without a crypto division will hardly be competitive in the medium term, Ripple predicts.

Citing a study by Ernst & Young this year, Ripple assumes that 64 percent of private investors already have Bitcoin and other cryptocurrencies in their portfolios. 69 percent want to expand their investments in the crypto sector by 2027. This alone makes it clear that banks can no longer do without building up crypto expertise and services, writes Ripple.

But regional banks are struggling to compete with neobrokers like Robinhood, observes Ripple

And large international banks also have some catching up to do, especially when it comes to storing crypto assets like Bitcoin securely for their customers. The Ripple Custody department, which was redefined just this year, is intended to serve such bank customers and give them a good starting position when the trend towards tokenization of all kinds of asset classes grows into a trillion-dollar market in the coming years, Ripple advertises.

The company points to different crypto regulations in different countries, which can be easily met with the help of Ripple Custody. In addition to storing cryptocurrencies, services such as staking or issuing your own tokens will also be implemented, it says. Ripple Custody provides a brochure for those interested and direct contacts.

Conclusion: Evolution of Ripple – XRP plays a minor role at best

Investors are wondering why Ripple is increasingly publishing strategy papers in which XRP no longer appears at all, as is the case now. At the same time, the wait for the Ripple stablecoin RLUSD is dragging on longer and longer – although the project, as a digital US dollar, is a crucial element for comprehensive banking services. One gets the impression that Ripple’s initiatives are primarily about image management for the time being.

Ripple is unlikely to win over potential bank customers through general blog posts and slim brochures; instead, it must seek direct and personal contact. The price curve of XRP has long since stopped responding to such PR measures and cannot follow the upward trends in the overall crypto market. If XRP only appears marginally in Ripple’s future strategy, the altcoin will lose its foundation.

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