Ripple has announced new partnerships with Figment and Securosys to enhance its enterprise-level digital asset custody solution, Ripple Custody. This marks a strategic move by Ripple, aiming to bolster its blockchain-based payment and custody services for institutional clients. Recently, the company has engaged in various acquisitions, including the purchase of Palisade, to broaden its service offerings through the integration of new technologies.
Technological Advancements in Custodial Services
The partnership with Figment facilitates the addition of staking functions to the Ripple Custody service. This collaboration allows banks, custody companies, and regulatory institutions to participate in blockchain staking activities without needing their own validator infrastructure. The initiative underscores maintaining institutional security and governance standards.
Clients can now utilize Figment’s infrastructure to avail staking services on major blockchain networks such as Ethereum and Solana. Ben Spiegelman, a senior executive at Figment, highlighted how combining both companies’ technological expertise enables regulated entities to offer staking rewards on various blockchain networks to their clients.
Figment’s business development team emphasizes the new opportunities for regulated institutions resulting from merging Ripple’s custodial technology with Figment’s secure staking infrastructure.
Strengthened Security with Securosys Partnership
Ripple has also partnered with Securosys, a provider of cybersecurity and hardware-based encryption solutions, to enhance the security layers of Ripple Custody. Now, the custody service supports CyberVault HSM and CloudHSM technologies, offering institutions the flexibility of deploying key management both on cloud and on-premises environments.
Ripple aims to address cost, complexity, and slow procurement processes in hardware security module (HSM) usage within the industry. By increasing the number of supported HSM providers on the platform, Ripple offers more flexibility to institutions subject to different regulations.
Robert Rogenmoser, CEO of Securosys, points out that the integration of CyberVault HSM technologies with Ripple Custody allows institutions to gain full control over key management more efficiently, without encountering complexity.
Limited Movement on XRP Network
Despite Ripple’s strategic moves in institutional services, no significant increase in on-chain transactions has been observed on the XRP Ledger. Data indicates that the total locked value on the XRPL network has decreased from approximately 80 million dollars at the start of the year to 49.6 million dollars recently, suggesting a decline in DeFi ecosystem activity.
The market value of stable crypto assets in circulation on the network is around 415.85 million dollars, indicating steady growth but limited momentum. Ripple’s primary focus on custody, settlement, and specific financial use cases implies that its influence on broader DeFi metrics is not fully reflected.
Meanwhile, the new institutional agreements and services have not significantly impacted XRP’s price performance. Market data shows that XRP has declined by 32% over the past month. At the time of writing, XRP is priced at 1.44 dollars, indicating a slight daily decrease.
