Ripple’s Emphasis on Digital Asset Custody
Ripple is emphasizing the critical role of digital asset custody in revolutionizing the financial landscape, particularly as it relates to the burgeoning adoption of stablecoins and the expansion of tokenized assets. In a workshop held on August 18 in collaboration with the Blockchain Association Singapore (BAS), Ripple shared insights on the evolution of custody practices, asserting that they have grown from merely technical necessities into fundamental components of financial infrastructure vital for institutions transitioning to a tokenized economy.
Workshop Insights on Custody & Cybersecurity
The workshop, themed “Custody & Cybersecurity,” underscored a transformative period for the industry, highlighting the importance of robust custody systems to propel stablecoin utilization, improve compliance measures, and facilitate seamless international payment systems.
One of the predominant catalysts for this transition is the anticipated surge in market demand for tokenized versions of real-world assets, which Ripple cites to potentially escalate to approximately $18.9 trillion by 2033, referencing a recent analysis conducted along with Boston Consulting Group (BCG). Furthermore, Ripple’s 2025 New Value Report indicates that 71% of financial institutions in the Asia-Pacific region have shown increased trust in digital assets within the past six months. Despite this heightened confidence, only 30% of these institutions currently employ custody platforms, although 52% are looking to implement such solutions in the next three years.
Future of Custody Frameworks
During the workshop, experts examined a range of custody arrangements — from fully self-managed setups to outsourced models and hybrids — all aimed at meeting the demands of evolving regulations, managing liquidity effectively, and addressing varying levels of risk tolerance. Participants acknowledged the necessity for future custody frameworks to not only ensure asset safety but also foster innovation within operations.
Looking ahead, the discussion pointed to the importance of integrating custody systems with smart contracts and tokenized documents linked to conditions off the blockchain, to optimize programmable payments alongside allowing comprehensive execution of trade processes, conditional settlements, and streamlined compliance protocols. Industry leaders are advocating that the advanced evolution of custody infrastructure will be pivotal in establishing scalable and interoperable financial ecosystems.
