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SBI CEO Yoshitaka Kitao has shared Ripple’s recent blog post about the future of tokenized assets and Ripple’s role in making it real.
Now that the world is moving deeper into digital assets and blockchain tech, Ripple has stated that institutions are seeking “a digital asset custody solution that delivers the same robust services and protections they’ve long relied on for traditional assets: impenetrable security, seamless trading access.”
The company believes that over the next five years, at least 10% of all the world’s assets will be tokenized and stored/traded on-chain. Ripple has shared that all that financial institutions are looking for now is provided by its solution called Ripple Custody.
Ripple Custody offers three crucial use cases to enable financial institutions “to transform high-level digital asset potential into operational reality”: core safekeeping, stablecoin issuance, and governance.
Core safekeeping of assets is vital since the lack of it will result in the permanent loss of assets or in unauthorized access to billions of dollars worth of digital assets through the loss of private keys.
To solve this issue, Ripple Custody offers “bank-grade infrastructure, robust compliance frameworks, high reliability, and flexible deployment options. By 2030, the worth of crypto assets under custody is projected to reach a whopping $16 trillion.
Another use case Ripple offers to financial institutions is they expand their active presence in the digital asset sphere is stablecoin issuance. Stablecoins are becoming increasingly popular as tools for payments, remittances, and operations with collateral.
Using Ripple Custody, institutional clients can mint, burn, and manage their stablecoins in all other accessible ways using the XRP Ledger or any blockchain compatible with Ethereum’s EVM. Ripple has its own stablecoin, RLUSD, which is a ready-made solution for institutions already if they do not want to bother creating their own stablecoin.
The third solution offered by Ripple to institutions is to help them configure their digital asset governance policies and align with regulatory demands.
