Ripple Expands Into Crypto Custody and Tokenization Services to Lead Blockchain Innovation

Ripple is making bold moves to expand its footprint beyond payments by diving into cryptocurrency custody services a strategic pivot that, according to legal expert John Deaton, reveals Ripple’s long-term vision for blockchain dominance. Best known for its XRP token, Ripple is now putting a major focus on digital asset custody and tokenization.

Deaton believes this strategic shift will see Ripple offer tokenization-as-a-service to global financial institutions, a move that could potentially boost the value of XRP in the coming years.

Ripple’s New Focus: Custody and Tokenization Solutions

Ripple’s growing emphasis on custody services has sparked discussions across the crypto industry, especially after John Deaton shared his insights via a post on X (formerly Twitter).

Historically, Ripple has centered its business on facilitating interbank payments. However, this new focus on custodial services represents a significant evolution. According to Deaton, Ripple aims to become a comprehensive blockchain solutions provider for financial institutions, offering everything from payments to custody and tokenization under one roof.

Ripple’s aggressive acquisition strategy over the past two years has set the stage for this expansion. The company’s multi-billion-dollar purchases of Metaco and Standard Custody in 2023 and 2024 were clear signals of its ambition. Deaton points out that these acquisitions, along with Ripple’s acquisition of Hidden Road, position the company to offer integrated custody solutions alongside its existing payment and stablecoin services.

“By providing custody services alongside payments and stablecoins, Ripple becomes a one-stop shop for financial institutions integrating blockchain technology,” Deaton explained.

This strategy firmly places Ripple at the forefront for institutions navigating the growing blockchain and digital asset sectors.

Ripple Eyes the Tokenization Boom

According to Deaton, Ripple’s move into custody isn’t just about securing digital assets it’s about becoming a leader in the exploding tokenization market.

Ripple is preparing to launch tokenization-as-a-service, which will allow banks and major financial institutions to tokenize traditional assets such as stocks, bonds, and real estate through a unified, easy-to-use platform. Deaton believes that Ripple’s expanding custody infrastructure will provide the critical foundation for seamless tokenization, potentially reshaping the global financial system.

XRP Ledger Set to Become the Epicenter for Tokenized Assets and RLUSD Growth

Ripple’s broader vision includes positioning the XRP Ledger as the central hub for tokenized assets. At the heart of this plan is Ripple’s upcoming stablecoin, RLUSD, which Deaton sees as a key catalyst for tokenization adoption.

With Ripple leading the way, banks and financial firms could soon tokenize real-world assets more easily, helping to bridge the gap between traditional finance and blockchain technology. Analysts suggest that if RLUSD manages to capture even a significant share of the current USDT market, the price of XRP could see a substantial increase.

Ripple’s strategic push into tokenization comes as major developments loom, including the potential launch of XRP futures on the CME Group platform, pending regulatory approval.

Ripple’s Race Against the Competition

As the global custodial market is projected to hit $16 trillion by 2030, Ripple is moving aggressively to outpace competitors like Circle, which recently rolled out its Payment Network focused on real-time blockchain payments.

John Deaton suggests that Ripple’s leadership, particularly CEO Brad Garlinghouse, is determined to reclaim momentum lost during the lengthy SEC legal battle.

“It looks like Brad Garlinghouse is making up for lost time after the delays caused by the SEC lawsuit,” Deaton commented.

Despite facing stiff competition, Ripple's bold strategy and recent acquisitions may give it the edge needed to dominate the custody and tokenization sectors.

At the time of writing, XRP was trading at $2.32, up nearly 7% over the past 24 hours, according to the latest market data a sign of growing investor confidence in Ripple’s expanding role in the digital asset economy.