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Ripple has introduced a new service that helps banks and fintech firms store digital assets on behalf of clients while filing a cross-appeal in its case against the US Securities and Exchange Commission (SEC).
Aaron Slettehaugh, Ripple’s SVP of product explained, “Ripple’s custody technology offers a single platform for safeguarding and managing digital assets, designed with the security and compliance standards that top global banks and financial institutions have come to rely on.”
These new updates to Ripple Custody include new transaction screening services, additional hardware security module (HSM) options, integration with XRP Ledger (XRPL) for tokenizing Real World Assets (RWA), pre-configured policy frameworks, and improved usability.
This initiative, which Ripple describes as a "bank-grade custody solution" is part of Ripple's broader effort to diversify beyond its core payment settlement business, which is powered by its Ripple Payments platform. Ripple Payments, which uses blockchain technology, helps banks exchange updates on money movements within a global network.
Integrating XRPL features allows businesses to tokenize a wide variety of assets, including cryptocurrencies and fiat while leveraging XRPL’s decentralized exchange for cost-effective trading.
Ripple Custody has experienced a 250% year-over-year increase in customer growth and serves major worldwide institutions including BBVA Switzerland, DBS, and Societe Generale – FORGE.
According to Boston Consulting Group, crypto assets under custody are expected to surpass $16 trillion by 2030.
Taiwan's Financial Supervisory Commission (FSC) is set to launch a pilot program for virtual asset custody services in early 2025.
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Meanwhile, Ripple Labs said it will file a cross-appeal in its SEC battle, aiming to protect its legal arguments. Chief legal officer Stuart Alderoty explained that Ripple's move is intended to ensure that "We leave nothing on the table, including the argument that there cannot be an investment contract without there being the essential rights and obligations found in a contract."
In a "notice of appeal" to the Second Circuit Court of Appeals last week, the SEC pushed back against Judge Analisa Torres's ruling from two months ago.
Ripple was fined $125 million in early August, which CEO Brad Garlinghouse described as a “victory for Ripple.”
The figure was just a sliver of what the Ripple community had potentially faced. Initially, the regulator sought $1 billion in disgorgement and prejudgment interest and $900 million in civil penalty.
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Alderoty mentioned that in the upcoming weeks, both parties would need to complete a form providing "a fairly high-level overview" of their arguments. However, the regulator and the company won't dive into the details until their initial briefs are submitted.
"I don't think that folks who are paying attention should be much distracted by these efforts to create confusion, because I think the judge got it right, and I think they should welcome the opportunity for the court of appeals to roll on this issue and finally, bring the clarity that we need," Alderoty said.
"Short of that, and while we don't have one, it's going to be up to the courts, and we're willing to continue to fight that fight and collect victories and bring clarity to the industry through the litigation process," he said.
