U.S. %Blockchain company %Ripple (CRYPTO: $XRP) is launching a new %Cryptocurrency custody service that will enable banks to store digital assets on behalf of their clients.
Ripple’s management team says the new custody service for banks is aimed at helping the San Francisco-based company diversify its operations and grow its revenue.
The custody features being offered to banks include integration with Ripple’s XRP blockchain platform, monitoring of anti-money laundering risks, and compliance advice and support regarding cryptocurrencies such as %Bitcoin (CRYPTO: $BTC) and %Ethereum (CRYPTO: $ETH).
Ripple, formerly known as Ripple Labs, is mostly known for its XRP cryptocurrency and its payment settlement business.
Now, the company is branching out into offering crypto custody services to third parties such as banks and other financial institutions. Several other companies offer similar services, including %Coinbase (NASDAQ: $COIN) and Gemini.
Custody is a fast-growing area of the crypto sector. Custodians play a key role in the crypto market, helping clients safeguard their digital assets and ensure regulatory compliance.
The Boston Consulting Group forecasts that the custody market will reach $16 trillion U.S. by 2030. Ripple says that it expects its custody service to grow more than 250% in the next year.
The XRP cryptocurrency has risen 7% in the past 12 months and currently trades at $0.53 U.S. per digital token.