Ripple, a cryptocurrency payments network, is diving into the crypto custody sector, aiming to effectively take advantage of a multi-trillion dollar market. This move is significant as it could potentially trigger renewed bullish momentum for the XRP price.
Ripple Enters Crypto Custody Market
In a YouTube interview with Tony Edward, the founder and host of the popular crypto channel, Thinking Crypto, Ripple’s Chief Technology Officer (CTO), David Schwartz, discussed various topics and developments concerning the Ripple ecosystem.
The podcast covered a range of subjects from Ripple’s XRP Ledger and its Automated Market Maker (AMM) to insights on Central Bank Digital Currencies (CBDCs) and stablecoins. Notably, the spotlight was on Ripple’s recent entry into the crypto custody market.
In 2023, Ripple achieved a significant milestone by securing a partnership with HSBC after acquiring Metaco, a blockchain and cryptocurrency firm specializing in digital asset custody and tokenization. Referring to these key achievements, Edward raised the question of whether HSBC intends to utilize the XRP Ledger or the Ripple network.
Schwartz responded that Ripple has always been working towards acquiring a secure custody solution, aligning with its goals to serve as a “one-stop shop for institutional adoption of crypto.” He added that the custody solution would help facilitate Ripple’s ambition to create a platform that would provide access to the XRP Ledger, advanced tokenization, and prepayments.
The Ripple CTO revealed that after searching for various options for custody solutions, Metaco and HSBC emerged as the most suitable choices for the Ripple network. He stressed the importance of Ripple’s movement into the custody sector, emphasizing the market’s substantial value, which is set to reach $10 trillion by 2030.
“By adding custody, that’s going to make Ripple the leading enterprise solution provider in the space and I am so super excited about that,” Schwartz said.
XRP Sees Bullish Prospects With Ripple’s Expansion Into New Markets
Ripple’s decision to expand into the crypto custody market could have a positive impact on XRP’s price, which has been struggling to rally recently. Presently, the price of XRP is trading at $0.51, reflecting a prolonged period of price stagnation. The cryptocurrency has had a slow recovery due to ongoing regulatory and legal challenges with the United States Securities and Exchange Commission (SEC).
The move into a multi-trillion dollar market would broaden Ripple’s global footprint, attracting new investors and traders and potentially fuelling XRP’s upward trajectory.
Including the custody market, Ripple is also set to expand into other innovative markets, including the Information Technology (IT) industry, the global payments sector and tokenized asset sector. These diverse markets are expected to positively impact Ripple’s ecosystem and possibly change the price dynamics of XRP in the future.
Token price resumes uptrend | Source: XRPUSD on Tradingview.com
Featured image from Decrypt, chart from Tradingview.com