XRP News Today: Ripple and Absa Secure Africa's Emerging Crypto Market with Institutional Custody

Ripple, the blockchain payment solutions provider, has partnered with South Africa's Absa Bank to offer institutional-grade digital asset custody services, marking the first major collaboration of its kind in Africa. The partnership, announced on October 15, 2025, positions Absa as Ripple's initial custody client on the continent, leveraging the company's institutional-grade technology to securely store cryptocurrencies and tokenized assets for its clients, according to a Fanews report. This move expands Ripple's global custody network, which now spans Europe, the Middle East, Asia-Pacific, Latin America, and Africa, according to a Coinpedia report.

The collaboration comes as regulatory clarity around digital assets improves across Africa, driving institutional interest in blockchain-based solutions. Absa, which serves over 12 million customers across ten African countries, will use Ripple's infrastructure to meet growing demand for secure, compliant custody services. "Africa is experiencing a major shift in how value is stored and exchanged," said Reece Merrick, Ripple's Managing Director for the Middle East and Africa, in a Coindesk article.

Ripple's custody technology, already operational in other regions, provides scalable storage and advanced compliance features. Absa's Head of Digital Product: Custody, Robyn Lawson, emphasized that the partnership allows the bank to "leverage proven and trusted technology that meets the highest security and operational standards," as quoted in a Bankless Times article. The integration aligns with Absa's strategy to innovate while maintaining client trust, particularly as South Africa and other African nations formalize frameworks for crypto trading and taxation, according to Cointelegraph.

The partnership builds on Ripple's existing footprint in Africa, including collaborations with payments provider Chipper Cash and the rollout of its USD-backed stablecoin, RLUSD, across the continent. According to a Zawya press release, 64% of Middle East and Africa finance leaders cite faster payments and settlement times as the primary driver for adopting blockchain-based currencies. This aligns with broader trends: Sub-Saharan Africa processed over $205 billion in on-chain crypto transactions between July 2024 and June 2025, a 52% annual increase, per a CryptoNews article.

Ripple's expansion into Africa is also supported by its regulatory credentials, including over 60 licenses and registrations globally. The company's custody solution is designed to meet strict operational and compliance standards, addressing concerns from traditional financial institutions wary of digital asset risks. "Ripple's infrastructure enables banks like Absa to confidently explore new digital asset offerings while meeting regulatory requirements," the company noted in a FinCrimeCentral report.

The partnership reflects a broader shift in Africa's financial landscape. South Africa, in particular, has emerged as a leader in crypto regulation, with the Financial Sector Conduct Authority (FSCA) classifying crypto assets as financial products and licensing 248 virtual asset service providers (VASPs) by late 2024, according to an Emurgo blog. This regulatory clarity has spurred adoption, with South African crypto users spending an average of $51.38 annually—far exceeding the regional average, per a Forvis Mazars analysis.

Ripple's move into Africa also highlights the growing role of stablecoins in cross-border transactions. RLUSD, the company's stablecoin, is being integrated into platforms like Chipper Cash, VALR, and Yellow Card to facilitate faster, cheaper payments. In Kenya, Mercy Corps Ventures is piloting RLUSD for climate risk insurance, using smart contracts to automate payouts during droughts, according to a Cryptopolitan report.

With Africa's crypto market projected to grow further, Ripple's partnership with Absa signals a strategic bet on the continent's digital finance potential. As institutions and regulators continue to align on standards, the collaboration could set a precedent for secure, compliant crypto custody across emerging markets.

---