Ripple Labs, Inc. has recently applied for a trademark for "Ripple Custody," hinting at a new digital asset custody service targeting institutional investors. This application was filed with the United States Patent and Trademark Office (USPTO) on February 25, 2025. While the application is still in its early stages and no examiner has yet been assigned, Ripple's move is significant in the rapidly growing field of digital asset management.
The submission follows Ripple's acquisition of Swiss digital asset custody firm Metaco in 2023 for $250 million. This acquisition enabled Ripple to launch a "bank-level" custody service by October 2024, designed to cater to the increasing needs of institutional investors for secure management of cryptocurrencies. Furthermore, Ripple has also partnered with South Korean company BDACS to extend custody services for its native XRP and Ripple USD (RLUSD), signaling its strategic intent to broaden its portfolio.
According to forecasts, the global digital asset custody market is anticipated to soar to $1 trillion over the next decade. Ripple's entry into this sector is poised to enhance the secure storage and management options available to both institutional and individual users, thereby diversifying its operations beyond cross-border payments.
Ripple announced the functionality of "Ripple Custody," which goes beyond mere storage of digital currencies. The trademark application outlines four main components: financial services related to the custody of cryptocurrencies and fiat currencies, downloadable software for managing custody services, peer-to-peer network computer services for transmitting financial data through electronic communications, and cloud-based Software as a Service (SaaS) solutions.
Notably, there is speculation that the downloadable software component refers to a potential cryptocurrency wallet feature, which could create a new revenue stream through transaction fees. Analysts suggest that offering a cryptocurrency wallet could diversify Ripple's business model and provide additional capabilities to its users.
In addition to the acquisition of Metaco, Ripple has also secured Standard Custody & Trust Company, based in New York, in June 2024. The aim of this acquisition was to further enhance its assets under management and reinforce Ripple's offering in the institutional investment space. The company has positioned itself as an innovative leader in a challenging market.
Ripple's "Ripple Custody" is equipped with bank-grade infrastructure providing 24/7 availability for digital asset transfers and settlements. Other features include the tokenization and management of Real World Assets (RWA) and support for private key management solutions such as Multi-Party Computation (MPC) and Hardware Security Module (HSM) compliance.
Moreover, "Ripple Custody" integrates with Ripple Payments, which consists of an international payment solution utilizing Ripple's US dollar-denominated stablecoin, RippleUSD (RLUSD). This integration aims to provide institutional investors a streamlined on-ramp and off-ramp for converting fiat currencies to digital assets and vice versa.
On-ramp services refer to converting fiat currency into cryptocurrencies, while off-ramp services enable the opposite transaction—converting cryptocurrencies back into fiat currency. This comprehensive offering positions Ripple to cater to the needs of institutional investors looking for reliable and efficient digital asset custody solutions.
As Ripple continues to innovate and expand its services, it underscores the increasing importance of secure custody solutions in the cryptocurrency market. The company's strategic maneuvers highlight its understanding of the evolving demands of institutional investors amid a growing market and technological advancements.
Overall, Ripple's efforts in establishing a detailed framework for "Ripple Custody" symbolically indicate its ambition to fortify its position in the evolving landscape of digital asset management, potentially paving the way for new opportunities in the highly competitive industry.
