Fintechs and neobanks have transformed the financial landscape, bringing innovation to digital wallets, real-time payments, and financial services. With projections indicating that 10% of global assets will be digital by 2030, a new opportunity is emerging: institutional digital asset custody.
As demand grows for secure and compliant storage of digital assets, fintechs are well-positioned to seize this market. Ripple’s latest guide provides a strategic roadmap for fintechs looking to build trust, expand use cases, and unlock new revenue streams in the custody space.
The Growing Role of Digital Asset Custody
What began as a retail-driven market is now seeing strong institutional adoption, with 96% of institutional investors recognizing digital assets as a valuable diversification tool. This shift is fueling a $20 trillion opportunity, making institutional crypto custody a crucial investment for fintechs.
Unlike traditional financial institutions, fintechs can swiftly adapt to evolving demands, offering secure, compliant, and scalable custody solutions. Many are already implementing advanced security mechanisms such as multi-party computation (MPC) and hardware security models for private key management to ensure asset protection.
Adapting to Institutional and Retail Needs
Fintechs thrive on innovation, and digital asset custody presents a chance to serve both institutional investors and digitally savvy retail users. With fintech revenues expected to grow nearly three times faster than those of traditional banks, a strong custody infrastructure will be critical for long-term success.
- Institutional Investors: Banks and financial institutions seek reliable custody services with regulatory compliance, AML protections, and support for tokenized assets. Fintechs can fill this gap by providing high-quality, tailored custody solutions.
- Neobanks and Emerging Markets: Younger, tech-savvy users need secure and accessible crypto on-ramps and off-ramps. These users expect high transaction speeds, user-friendly interfaces, and seamless integration with liquid markets and multiple blockchain protocols.
Ripple Custody: A Comprehensive Digital Asset Solution
Ripple Custody is an enterprise-grade digital asset custody and tokenization infrastructure designed to meet the evolving needs of fintechs and their customers. It offers:
- Secure crypto custody and trading for retail, institutional, and high-net-worth clients
- Structured financial products backed by digital assets
- Custody and issuance of tokenized commodities like gold and rare metals
- Retail-focused tokenization solutions, such as NFTs for loyalty programs
- Seamless, secure access to decentralized applications (dApps)
By leveraging Ripple Custody, fintechs can introduce new revenue streams without the complexities and risks of developing an in-house custody solution.
Future-Proofing Fintech with Institutional-Grade Custody
With digital asset adoption accelerating, fintechs and neobanks have a unique opportunity to lead the market by offering crypto custody services. Ripple Custody has already demonstrated success in reducing costs, enhancing security, and simplifying asset management. Operating across more than 20 regulatory jurisdictions, it provides fintechs with the confidence to meet compliance requirements while expanding their customer offerings.
As institutional and retail demand for crypto custody continues to rise, fintechs that embrace this shift with Ripple Custody can position themselves as trusted industry leaders.
Source: RippleLabs
