Ripple, the San Francisco-based blockchain payments company, has introduced significant upgrades to its Ripple Custody service. These upgrades focus on enhanced security and new tokenization features. 

These updates are designed to assist banks and fintech firms in securely managing and storing digital assets on behalf of their clients. All while embracing the future of tokenized Real-World Assets (RWA).

Ripple Custody: Enhancing Tokenization and Asset Management

Ripple Custody now boasts advanced tokenization functionality. This new feature is poised to allow the issuance and transfer of digital assets directly through the XRP Ledger (XRPL). This move enables banks and fintechs to tokenize real-world assets. 

This includes commodities or real estate on the XRPL platform. Clients can also access XRPL’s decentralized exchange (DEX), which offers low-fee trading of any tokenized asset, further streamlining financial operations.

These tokenization features reflect Ripple’s commitment to pushing the boundaries of digital asset management. It will provide banks and fintechs with a scalable, secure platform to handle traditional and digital financial assets.

Usability and Security Upgrades

Ripple has also made strides in improving the user experience of its custody platform. It has introduced a more intuitive interface for seamless asset management. In addition, the platform now integrates compliance tools through a partnership with Elliptic. 

This partnership ensures that the custody service meets the stringent requirements of global financial institutions. Other enhancements include an improved hardware security module (HSM) for safeguarding private keys. 

Also, a new transaction screening service bolsters compliance and risk management. These features are tailored to meet the growing digital asset economy’s evolving security and compliance standards.

The Growing Importance of Custody in Digital Finance

Custody services have become a cornerstone of the digital asset ecosystem, particularly as the market expands. Institutions need robust solutions to manage and protect private keys securely. Ripple’s enhanced custody service is poised to meet this demand.

A Boston Consulting Group (BCG) report projects that crypto assets held by custodians could reach $16 trillion by 2030. Additionally, the tokenization of real-world assets is expected to comprise 10% of the world’s GDP by that time. 

Ripple’s updated custody service aims to capitalize on this growth, offering financial institutions the tools they need to participate in the future of tokenized finance securely.

The post Ripple Launches Custody Service for Banks and Fintechs appeared first on TheCoinrise.com.