Ripple, the blockchain company behind the XRP token, has partnered with Absa Group, the South African banking giant, to launch a bank-grade digital asset custody service.
It is Ripple’s first major custody partnership in Africa, designed to help institutions safely store and manage cryptocurrencies and tokenised assets.
Absa, one of Africa’s largest financial institutions, manages assets worth over 2.07 trillion South African rands. It will now offer its clients digital asset custody services powered by the global blockchain company’s technology.
Ripple offers a secure digital asset protection system
The exchange custody solution was initially developed by Metaco, a Swiss-based technology firm acquired by Ripple in 2023. The platform offers a highly secure system for protecting cryptocurrencies, stablecoins, and tokenised assets.
The system includes features like multi-signature authorisation, hardware security modules (HSMs), and governance workflows to ensure the highest level of asset protection.
It also complies with international regulatory standards to ensure banks and other regulated organisations are exploring digital finance.
Absa, through its corporate and investment banking division, shared the news on social media, saying: “The future of finance is digital, and it demands trusted partnerships. Our latest collaboration with Ripple strengthens our commitment to regulated custody solutions built for the future.”
Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, also noted the partnership’s importance, saying it “underscores Ripple’s commitment to unlocking the potential of digital assets on the continent.”
South Africa classifies cryptocurrencies as financial products
The partnership comes as South Africa is taking steps toward regulating the crypto sector. In 2022, the Financial Sector Conduct Authority (FSCA) stated it had recognised cryptocurrencies as financial products.
This allowed financial institutions to explore the digital asset market under a clear regulatory framework.
The FSCA also started licensing crypto service providers to paving the way for banks like Absa to participate in the digital economy safely.
The partnership also builds on Ripple’s expanding footprint in Africa. Earlier in the year, they teamed up with Chipper Cash, a leading African fintech company, to enable crypto-powered cross-border payments.
The company later introduced its Ripple USD (RLUSD) stablecoin through partnerships with VALR and Yellow Card to fully expand access to African digital assets.