Ripple: During last year’s crypto pump, demand for crypto was so high that most exchanges literally grind to a halt. Many of them had long waiting times for deposits and withdrawals, while others had to drop halt new account signings. This exposed the weakness of the crypto ecosystem at the time, a weakness that has been holding back institutional money from getting into crypto.
However, things are changing, and exchanges like Coinbase have moved ahead to launch custodial service that allow large investors easily get into crypto without having to worry about custody. This is pretty much the reason why there was so much excitement in the market when Coinbase announced a custodial service for crypto.
But the biggest news in the making is the development of a custodial service specifically for XRP. Sometime back, David Schwartz, one of the key people behind XRP sent out a tweet to the effect that Polysign was hiring.
Though he didn’t provide much details, a look at the Polysign LinkedIn page shows that is a startup that is working on institutional digital asset custody. The key people behind its technical development include David Schwartz and Arthur Britto, one of the founders of ripple.
This clearly goes to show that ripple is working on institutional custody for XRP (XRP), and once complete it will be a game changer for this crypto. That’s because XRP (XRP) is by design aimed at financial institutions. Since institutions will be dealing with billions of dollars’ worth of XRP, it is only natural that they will be need a safe and reliable place to store it.
As such, with a custodial service designed by a ripple associated company for XRP, it would literally make ripple a one-stop shop for institutions looking to make use of XRP. This convenience would open up the possibility of even more institutions working with ripple in the adoption of XRP for cross-border payments.
Besides, it would also draw in more large investors into XRP. When Coinbase announced the introduction of custodial services, the market was excited because it meant large institutional investors such as pension funds, would have an efficient avenue for getting into crypto. Similarly, an XRP custodial service will draw in more institutional money into a crypto that is already attracting institutional money through platforms like SBI.
But the biggest win from this service will come from the fact that it reduces the leverage that Coinbase has over XRP. In the recent past, Coinbase has been reluctant to list XRP (XRP). However, with a ripple backed custody service, XRP would pretty much eliminate this leverage. That’s because institutional money looking to invest in XRP (XRP) can always get it elsewhere and store it on a ripple-backed custody service.
Clearly, the custody service that Polysign is building will be a game changer for XRP in the long-run. It will open up the floodgates of XRP (XRP) and draw in institutional money, both investors and users, pushing up the value of XRP to unprecedented levels.