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Ripple CTO Reveals Strategic Move into $10 Trillion Crypto Custody Market with Metaco, HSBC

Ripple CTO David Schwartz has provided insights into Ripple’s strategic move into the projected $10 trillion crypto custody market with significant players such as Metaco and HSBC.

His remark on the subject came during a recent interview on the Thinking Crypto Podcast. Specifically, the conversation shed light on Ripple’s acquisition of Metaco, a custody-focused firm.

The host referenced last year’s news about Ripple’s acquisition of Metaco and its subsequent partnership with global banking giant HSBC. He inquired about the specifics of these moves and whether HSBC would integrate the XRP Ledger into its operations.

David Schwartz of #Ripple talks partnership with Metaco and HSBC’s plans with Metaco’s #crypto custody platform.

Watch the full interview https://t.co/ka5VogQCMP#xrp #xrpl #xrpledger #bitcoin #thinkingcrypto #podcast #interview #hsbc #metaco @JoelKatz @Ripple @HSBC… pic.twitter.com/GqqyWPAgsJ

— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) January 24, 2024

It Aligns with Ripple’s Pursuit of Institutional Adoption

In response, Schwartz disclosed that the decision to delve into the custody scene was driven by the need for a comprehensive solution in Ripple’s pursuit of being a “one-stop shop” for institutional adoption of cryptocurrencies.

He highlighted the importance of offering a platform encompassing access to the XRP Ledger, tokenization, and payments. He noted that a secure custody solution was a crucial component of this vision.

Furthermore, Schwartz expressed that institutions looking to venture into the crypto space would first turn to a provider offering custody, liquidity services, payment solutions, and connectivity to on-ramps and off-ramps.

“By adding custody, that’s going to make Ripple the leading enterprise solution provider in the space,” emphasized Schwartz.

On this premise, the Ripple CTO revealed that after evaluating various companies, Ripple acquired Metaco in May 2023. Per his admission, this marked Ripple’s largest acquisition at a quarter of a billion dollars.

Custody Market to Hit $10 Trillion by 2030

Furthermore, Schwartz underscored the significance of the custody market, projecting it to reach $10 trillion by 2030.

“Custody is a massive market, something like 10 trillion dollars by 2030, and the increases in tokenization mean that’s just going to grow,” said Schwartz.

Moreover, he stressed that a secure and reliable custody solution becomes paramount as institutions become the main drivers. According to him, secure storage will be crucial whether for central bank digital currencies (CBDCs) or stablecoins.

HSBC Seeks to Solve Compliance Issues

Commenting on the alliance with global banking giant HSBC, Ripple CTO pointed out that HSBC plans to introduce a custody service for digital assets tailored to their clients.

According to him, this approach resembles a layering service, wherein HSBC utilizes advanced technology for custody. The noteworthy aspect of this arrangement is that HSBC assumes responsibility for compliance on behalf of its clients.

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