"Ripple preparing domestic custody business…responding ahead of corporate market opening"

It is reported that Ripple is preparing a custody (custodial) business in South Korea.

On the 12th, industry sources said Ripple appointed a person in charge of overseeing the Korean market earlier this month and began preparing for the custody business. As Ripple does not have a virtual asset service provider (VASP) license from domestic financial authorities, it is reportedly considering supplying solutions by partnering with domestic companies that hold a VASP. Earlier, Ripple had formed partnerships with custody firms Bidax and Danal Fintech.

Custody services are businesses that store and manage customers' digital assets on their behalf and operate on a custody fee basis. Demand has formed mainly among corporate investors because when investors manage wallets directly, the risk of private key (personal key) theft or loss is high.

Overseas, major investment banks such as Goldman Sachs and specialized custodians have entered the market. As the corporate market in Korea is expected to open from next year, opportunities for companies preparing custody services are also expected to expand.