Insights from Ripple’s Workshop: Four Key Custody Practices for Digital Assets
Ripple distills essential practices for digital asset custody into effective strategies which are critical for scaling stablecoins and enhancing operational resilience.
Key Takeaways:
- Ripple and Blockchain Association Singapore co-hosted a workshop, focusing on digital asset custody.
- Best practices highlighted include compliance by design, tailored custody models, and ensuring operational resilience.
- Custody is fundamental for the growth of stablecoins and the broader adoption of tokenized finance.
Ripple’s executives emphasized the necessity of a “compliance-by-design” strategy to align with regulatory demands, such as those from Singapore’s Monetary Authority. Institutions are advised to tailor their custody models to suit their specific operational needs, reflecting a diversity of wallet types beyond simplistic categorizations.
They also stressed the importance of resilience, which requires robust workflows that can withstand potential disruptions. Governance is equally critical, calling for clear segregation of duties and strong independent oversight.
As the landscape evolves, the potential for custody solutions to facilitate mainstream applications in trade finance and global payments is increasingly within reach, with Ripple promoting its own solutions aimed at adhering to compliance and operational standards.
