Crypto firm Ripple has detailed its strategy to capture a significant share of the projected $16 trillion asset tokenization industry by onboarding major financial institutions onto the XRP Ledger (XRPL). The company emphasizes that its enterprise-grade custody service, which combines high-security hardware with rigorous governance and compliance standards, is key to solving security concerns and building institutional trust.
Ripple's custody solution is designed to provide 24/7 secure storage, settlement, and transfer of digital assets, mirroring the security rigor of traditional banks. It integrates Hardware Security Modules (HSM) with FIPS-certified hardware and is supported by providers like IBM Cloud HSM, Thales Luna, and AWS. The platform adheres to international standards including SOC 2 Type II, ISO 27001, and the EAL 5+ benchmark.
The system features a governance policy engine that verifies every transaction in real-time, enforcing controls to prevent unauthorized activities and ensuring operational visibility. For compliance, it incorporates transaction monitoring through firms like Elliptic and Chainalysis to support KYC, AML, and CFT standards.
Major banks including BBVA, SG Forge, DBS Bank, and DZ Bank are already using Ripple Custody, though they have not yet begun tokenizing assets on the XRPL. To further attract institutions, Ripple is proposing enhancements to the ledger, such as Confidential Multi-Purpose Tokens (MPTs) for privacy and native XRP staking to allow yield generation.
In parallel, Ripple is advancing on other fronts. It recently partnered with fintech RedotPay to integrate Ripple Payments for a crypto conversion feature in Nigeria, which will support XRP. The company also plans to support its RLUSD stablecoin in the future and has secured an expanded payments license from the Monetary Authority of Singapore.
Akshay Wattal, Ripple’s Head of Information Security, stated, "In crypto, security isn’t a feature but the foundation of institutional trust." Reece Merrick, Managing Director for Middle East and Africa, added that Ripple's solution delivers "bank level security, regulatory compliance, and seamless integration that institutions have been asking for."
