Ripple Maps 4 Pillars to Secure $30T Tokenization Future

Ripple has underscored the critical role of digital asset custody in the rapidly expanding tokenization market, with executives highlighting the infrastructure as a cornerstone for institutional adoption and innovation. During a recent joint workshop with the Blockchain Association Singapore (BAS), Ripple emphasized four core principles for custody providers, including compliance by design, tailored custody models, operational resilience, and governance. These pillars reflect growing regulatory and operational demands, particularly from markets like Singapore, where the Monetary Authority (MAS) mandates strict protocols for asset segregation and recovery [1].

The discussion underscored the importance of aligning custody infrastructure with evolving regulatory landscapes, such as the EU’s Digital Operational Resilience Act (DORA), which requires robust recovery standards and monitoring frameworks [2]. Ripple and BAS also released a best practices report for institutional stablecoin custody, developed by subcommittees on stablecoins and cybersecurity. The report outlines guidance for institutions seeking to meet regulatory and enterprise-grade operational standards [2].

Ripple executives noted that custody has become a critical entry point for enterprises aiming to scale digital finance, particularly for use cases like stablecoins, tokenized assets, and cross-border settlements. According to Rahul Advani, global co-head of policy at Ripple, and Caren Tso, Asia-Pacific policy manager, institutions must choose custody models—whether third-party, hybrid, or self-custody—that align with their operational needs and risk profiles [1]. The firm highlighted that more than 50% of Asia-Pacific firms plan to adopt custody solutions within the next three years, driven by a 380% surge in the tokenized real-world asset market, reaching $24 billion as of June 2025 [1].

The projected growth in tokenization is supported by recent forecasts. A Ripple-Boston Consulting Group (BCG) report predicts that tokenized real-world assets could reach $18.9 trillion by 2033, while Standard Chartered estimates the figure could hit $30 trillion by 2034 [1]. This momentum has attracted major financial institutions, with Goldman Sachs and BNY Mellon piloting blockchain-based tokenized money-market funds, while BlackRock, Coinbase, Bank of America, and Citi are exploring tokenization and digital securities offerings [1].

Ripple’s own custody infrastructure is designed to meet these demands, offering institutions the tools to securely manage tokenized assets while adhering to operational and legal standards. The company’s stablecoin, Ripple USD (RLUSD), is issued under a New York Trust Company Charter, requiring segregated reserves, third-party audits, and full dollar backing [1]. The platform also supports integration with APIs, AML tools, and programmable compliance features, which are essential for scaling use cases like trade finance, cross-border payments, and cash flow management [2].

The workshop also highlighted the broader implications for digital finance. Custody infrastructure must evolve to support smart contracts, tokenized documents, and automated compliance processes, enabling a more scalable and interoperable financial system. As adoption accelerates, custody will remain a foundational layer for digital asset ecosystems, supporting innovation while ensuring regulatory compliance and institutional trust [2].

Source:

[1] Mitrade Insights (https://www.mitrade.com/insights/news/live-news/article-3-1052327-20250820)

[2] Ripple (https://ripple.com/insights/digital-asset-custody-building-institutional-resilience-compliance-and-scale/)

[3] MEXC (https://www.mexc.co/en-IN/news/ripple-says-custody-is-critical-four-pillars-for-providers/67352)