Ripple and Absa Bank have partnered to launch digital asset custody services in South Africa, expanding Ripple’s presence on the continent.
Ripple and Absa Bank to Launch Digital Asset Custody Services in South Africa
Ripple, known for its blockchain infrastructure for institutions and the development of the XRP token, has announced a partnership with one of South Africa’s largest banks, Absa Bank.
The bank will become Ripple’s first major custodial partner in Africa, using its solution for the secure storage of cryptocurrencies and tokenized assets.
Absa manages assets worth over 2.07 trillion rand ($119.5 billion) and generated over $6.3 billion in revenue in 2024.
“This partnership demonstrates the growing demand for secure, regulated digital infrastructure in emerging markets,” said Rhys Merrick, Ripple’s head of the Middle East and Africa region.
Expanding Ripple’s presence in Africa
The partnership with Absa adds to a series of Ripple initiatives on the continent:
- In March, Ripple launched a collaboration with Chipper Cash for cross-border crypto transfers.
- In September, the company introduced the Ripple USD (RLUSD) stablecoin in partnership with VALR and Yellow Card, launching its distribution to African users.
Ripple has been actively developing its custody ecosystem, integrating solutions for banks and fintech companies after acquiring Standard Custody last year.
Ripple Custody: A growing institutional focus
Ripple has begun trademark registration for custody services in March 2024.
Since then, the company has already signed partnerships with:
- HSBC (launching a platform for tokenized securities),
- Banco Bilbao Vizcaya Argentaria (Spain),
- Bahrain Fintech Bay,
- BDAas (South Korea).
Ripple positions its custody services as an institutional backend layer for banks and financial institutions integrating digital assets into their infrastructure.
Traditional banks accelerate the transition to Web3
Ripple’s partnership with Absa is part of a broader trend where traditional financial institutions integrate blockchain and tokenization:
- BlackRock received over $245 million in revenue from Bitcoin ETF,
- BNY Mellon is testing tokenized deposits,
- Morgan Stanley allows clients to invest in crypto funds,
- Sovereign funds of Luxembourg and Norway already have a stake in Bitcoin ETF.
Ripple seeks to occupy the niche of a provider of custodial and tokenization services that connect traditional finance and the new economy of digital assets.
Related: Gemini Reveals Ripple Partnership Boost Ahead of Nasdaq Debut
