The US-based blockchain solutions provider Ripple Labs is venturing into offering crypto custody services to banks and other financial institutions. Ripple announced that it is exploring markets beyond the traditional digital asset ecosystem by introducing crypto custody services to the mainstream financial industry.

Expanding Crypto Custody Services

Ripple has added multiple new features to its Ripple Custody solution to serve better the constantly changing needs of fintech and cryptocurrency companies. Some components include sophisticated anti-money laundering (AML) monitoring to ensure regulatory compliance.

Preconfigured operational and policy settings and seamless integration are some additional features. Institutions looking for safe and scalable digital asset custody will also find the platform more straightforward, thanks to its intuitive interface.

As Ripple continues introducing innovative updates to its custody solutions, the company aims to deliver a more robust service to high-growth businesses in the crypto sector. Aaron Slettehaugh, Senior Vice President at Ripple, stressed that these new features let Ripple Custody cater to the unique requirements of companies with a cryptocurrency focus.

Accordingly, the platform will become the go-to option for companies seeking scalability and security in their digital asset management.

Rising Demand for Crypto Custody Services

In recent years, there has been an increase in demand for trustworthy and secure crypto custody services. Ripple has experienced remarkable year-over-year growth of 250% in this domain, enabling it to reach seven countries and have major international clients like DBS, Societe Generale, BBVA Switzerland, and HSBC.

The fact that these organizations use Ripple’s custody solutions to manage their digital assets highlights the growing significance of custody services within the cryptocurrency ecosystem. Custodial services is one of the fastest-growing sectors in the cryptocurrency industry.

By 2030, the crypto custody market could be worth $16 trillion, according to Boston Consulting Group’s projections. Real-world assets are digitally represented on the blockchain through tokenization products, further driving this growth.

The demand for secure storage solutions has increased as more institutional businesses enter this market. Thus, Ripple is leveraging its XRP Ledger and decentralized exchange capabilities to offer a comprehensive and competitive solution for institutions venturing into the crypto market.

However, it competes against established players like Coinbase, BitGo, and Gemini in the cryptocurrency custody market. Hence, Ripple aims to become a leader in this quickly growing industry by emphasizing security, scalability, and regulatory compliance.

Taiwan’s Move Toward Crypto Custody Trials

Meanwhile, Taiwan is about to begin crypto custody trials in collaboration with regional banks, another step forward for the global crypto industry. This program is a component of the nation’s initiatives to boost institutional adoption of digital assets.

Taiwan’s primary financial regulator (the Financial Supervisory Commission (FSC)) will head the initiative. In the first quarter of 2025, the FSC will start accepting applications from banks interested in custody trials.  

Three banks have already indicated interest in the pilot project. These banks must list the kinds of cryptocurrencies they intend to hold in custody.

The banks must also clarify whether they plan to cater to institutional investors, general investors, or both. Hu Zehua, the director of the FSC’s comprehensive planning division, disclosed that the FSC welcomes the public’s input on the trial’s design to ensure optimal success.

Taiwan’s Steps Toward a Regulated Crypto Ecosystem

Taiwan has been moving very quickly to legitimize its cryptocurrency market. Accordingly, the country recently updated its anti-money laundering (AML) laws to include digital assets.

Per the new regulations, cryptocurrency companies operating in Taiwan must register with the FSC by September 2025. If they don’t comply, they could pay up to $156,000 in fines, and their executives could spend up to two years in jail.

These regulatory initiatives aim to stop illicit activity involving cryptocurrencies while creating a more transparent and safer environment for investors and businesses. Another important step toward integrating cryptocurrency assets into its financial markets is Taiwan’s decision to permit institutions to invest in foreign exchange-traded funds (ETFs).

This move will give cryptocurrencies more legal status within the region and create new investment options. In addition to legislative actions, Taiwan’s private industries are making strides in cryptocurrency.

Recently, Taiwan Mobile, a telecommunications company with over 10 million users, was granted a license to provide virtual asset-related services. These developments indicate that Taiwan is positioning itself as a leading player in Asia and the global digital asset market.

Moreover, the country is working to ensure that companies can operate more easily inside and across its borders by providing a clear regulatory framework for the industry.