- Digital assets are predicted to constitute 10% of global holdings by 2030, creating a $20 trillion opportunity for institutional digital asset custody.
- Fintech firms like Ripple are leveraging their agility and advanced technology to offer secure and compliant digital asset custody solutions to institutions and retail users.
The financial industry is undergoing a massive transformation, with digital assets expected to account for 10% of global holdings by 2030, according to Ripple’s latest report on February 12. Fintech firms, once disruptors in digital payments and real-time transactions, now stand at the edge of an even larger revolution: institutional digital asset custody.
Fintechs have a $20T opportunity in crypto custody.
1️⃣ 96% of institutions see crypto as a key for attracting new customers.
2️⃣ Secure and compliant custody is a must-have for fintechs offering crypto and tokenization services.
3️⃣ Fintechs can meet both institutional and…— Ripple (@Ripple) February 12, 2025
This emerging sector presents a staggering $20 trillion opportunity, fueled by the rising demand for secure and compliant custody solutions. As banks and financial firms look for reliable ways to manage digital assets, fintech companies are in a prime position to take the lead.
Ripple, a key player in blockchain technology, has recognized this shift. The company’s recent expansion into digital asset custody is providing fintechs with the tools to navigate this evolving market while ensuring security and compliance.
Fintech’s Competitive Edge in Digital Custody
Traditional custody providers have long dominated financial asset management, but fintechs bring something different: agility. Unlike conventional institutions, fintechs can rapidly deploy advanced solutions like multi-party computation and hardware security modules for private key management. These technologies enhance security while ensuring compliance across multiple portfolios.
For institutions, the primary concern is regulatory compliance and secure storage. Meanwhile, retail users, particularly in developing regions, prioritize ease of use, fast transactions, and access to liquid markets. This difference in needs has created a gap that fintechs are uniquely positioned to fill.
Ripple Custody is emerging as a powerful solution, offering flexible deployment models, customizable controls, and tokenization capabilities. These features allow fintechs to cater to both institutional and retail clients, broadening their revenue streams without the burden of building proprietary custody platforms from scratch.
Ripple’s Expanding Global Custody Network
As digital assets continue to gain momentum, Ripple Custody is already making waves. The service is currently operational in over 20 countries, with customer growth exceeding 250% year-over-year in 2024. This rapid expansion highlights the increasing demand for trusted and scalable custody solutions.
In October 2024, Ripple made significant moves to solidify its role in the crypto custody market. The company introduced new capabilities designed to assist banks and fintech firms in managing and storing digital assets. These enhancements include preconfigured policy settings, XRP Ledger (XRPL) integration, and improved anti-money laundering risk monitoring.
Ripple launches crypto storage services for banks in bid to diversify https://t.co/MiLJGYXzr5
— CNBC (@CNBC) October 10, 2024
With compliance becoming a focal point for regulators, Ripple’s latest offerings provide institutions with the confidence to engage in digital asset management without regulatory setbacks. Additionally, an upgraded user interface makes the platform more accessible, allowing clients to interact with digital assets more efficiently.
Custody remains one of the fastest-growing sectors within the digital asset space. At its core, custody involves securing private keys—the crucial codes required to access and transfer digital assets. As more institutions enter the crypto arena, the need for secure, scalable, and compliant custody solutions is becoming urgent.
