- Crypto custody firm Anchorage Trust Company, lists Ripple for its institutional clients.
Anchorage joins the list of many cryptocurrency custody firms offering Ripple (XRP) to their institutional investors. On April 2nd, 2020, cryptocurrency custody firm Anchorage, opened their doors to Ripple (XRP).
What is Crypto Custody?
Cryptocurrency custody solutions allow institutional investors to store their digital assets securely with third-party services. Custody firms are responsible for protecting assets for institutional investors. As a result, custody firms often carry massive insurance policies to safeguard against hacks. In exchange for these services, firms charge a small managing fee.
In addition to the imposed fee, custody firms only hold funds for large investors. Many of the leading firms impose a minimum investment of $1,000,000 to qualify for their services.
In their post, Anchorage cited Ripple’s numerous international connections and solutions. Anchorage’s reasons fall in line with the majority of other digital asset custody solutions: Ripple’s international connections.
Ripple’s solutions are currently in use in over 40+ countries across 350+ financial institutions. Thus, Ripple already has a significant international presence.
What This Means
Anchorage’s decision to add Ripple to their supported assets is significant. Custody firms employ rigorous security protocols and develop a robust back-end in order to support a digital asset. As a result, custody firms offer a far lower selection of assets to institutional investors and are very selective when choosing which assets to offer.
That means that Anchorage likely saw significant value in Ripple to support the currency. As another crypto custody firm lists Ripple, we will see Ripple’s already popular institutional investor base as support for large-scale investing grows.
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