Industry watchers see the development advancing not only Ripple’s XRP token but also benefiting the wider crypto sector by adopting trusted financial industry models for security and cooperation.
In a move viewed as transformational for cross-border cryptocurrency storage and transfers, blockchain company Ripple‘s Metaco custody network has partnered with digital asset custodial provider Zodia Custody. The collaboration marks what Zodia CEO Julian Sawyer regards as ‘third generation’ custody. The partnership tries to form a regulatory complaint and seamless digital service that also has traditional finance standards.
Industry watchers see the development advancing not only Ripple’s XRP token but also benefiting the wider crypto sector by adopting trusted financial industry models for security and cooperation. Together, UK-based Zodia and Swiss firm Metaco want to deliver robust, regulated solutions for institutional participation under Ripple’s guidance. In commenting on this and illustrating how this cooperation will work, Sawyer said:
“I think of this as the third generation of crypto custody, where multiple custodians are linked together. For example, a client in Brazil, who is a custodian, may want to store some assets in the UK, and they’re not currently in the UK. So they could use us as their sub-custodian and use our regulatory permissions, etc. I think the multiple networks that are out there are really key in terms of linking custodians together, and linking custodians to exchanges and venues in a compliant manner.”
As a leading crypto custodian focused on institutional clients globally, Zodia boasts backing from Standard Chartered Bank which helps it to provide highly secure and compliant services. Its partnership with Ripple-owned Metaco will facilitate easier access to these offerings across borders. Observers also note surging institutional interest in custody networks following past crypto exchange violations and vulnerabilities just like the FTX crash of last year. By evolving to mimic traditional financial practices, their goal is to reduce counterparty and transactional hazards.
The collaboration is a vital step in linking digital asset custodians around the world while satisfying compliance requirements. This ‘third generation’ approach joins multiple regulated crypto custodians internationally for smooth cross-border asset movements.
By potentially positioning Ripple’s XRP token favorably for major global banks to easily adopt, the cooperation also reflects ongoing dedication to technological progress and confidence in XRP’s prospects. It positions the blockchain solution in a good spot in its goal to get more adoption by banks around the world. It also potentially furthers the evolution of digital asset protection and approves growth for compliant international frameworks.
XRP Expected to Surge Following Collaboration News
Upon the release of such collaboration news, it is anticipated that community expectations regarding the respective token will soar. In this instance, analysts predict that this development will significantly impact the price of XRP, leading to a surge in both weekly and monthly highs.
Following a two-week retracement period, the price of XRP has begun to rebound. Over the past week, the price has experienced an increase of more than 5%, instilling hope among XRP holders. The news itself further bolsters this optimism and is expected to influence overall market sentiment.