Ripple says that as cryptocurrencies grow into institutional crypto custody, tokenization, cross-border payments, etc., crypto exchanges will need to evolve their services and products. The company offers products that exchanges can take to the next level, including Ripple Custody, Ripple Payments, and the scalable XRP Ledger.
Cryptocurrency exchanges have been at the heart of the space for years, making thousands of digital assets available to millions of traders. However, as the crypto industry grows, it must adapt and evolve to offer products better suited to the new era of crypto finance. Ripple says it has the infrastructure in place to advance products such as the XRP Ledger that these exchanges can use to reduce costs and increase revenue.
In a blog post on Thursday, Ripple reflected on the role of exchanges and how it is evolving as cryptocurrencies become less of a niche for anarchists and tech enthusiasts. Exchanges are now central to use cases such as tokenization, and their value is estimated to reach $16 trillion by the end of this decade.
According to estimates, tokenization could reach $10 trillion by 2030, and cryptocurrency exchanges will need to evolve for the digital asset economy.
How can they adapt?
🔐 Facility-level storage solutions
💱 Efficient cross-border payments
📊 Extract revenue from tokenized assets
🛡️Simplification…
— Ripple (@Ripple) October 24, 2024
Ripple believes it is essential for exchanges to future-proof their businesses. The business model that generated billions of dollars eight years ago—almost solely for transaction fees—is no longer sustainable as the industry evolves. Additionally, the value of cryptocurrencies is shifting to other dimensions, and exchanges will need to service these dimensions before other stakeholders can fill the void.
One such aspect is tokenization. Goldman Sachs predicts that tokenization will become a $16 trillion opportunity by 2030. The California company said exchanges must “adapt and prepare for the inevitable transition to a digital asset economy.” Combining high-demand services such as institutional digital asset custody and a streamlined crypto off-ramp allows providers to better balance current and future customer needs. ”
Ripple exchange solutions
Ripple said in a blog post that it offers a number of solutions for exchanges. One is Ripple Custody, which provides exchanges with world-class security, facilitating trading while guaranteeing the safety of user assets, providing cold storage, and allowing them to support new use cases.
The product has advanced customization capabilities and provides users with a flexible key management structure for greater autonomy.
“This will enable exchanges to serve a wide range of customers, from those seeking long-term storage of digital assets to those recording high-frequency transactions, without sacrificing security or compliance.” states.
Ripple Payments allows users to leverage blockchain technology to conduct fast global transactions. Exchanges can integrate this to offer “real-time payments, more affordable cross-border trading, and dramatically increased transparency, all in a safe, secure and compliant manner.” can.
All these solutions are tied together by XRP and the XRP Ledger.
By future-proofing their digital asset infrastructure, cryptocurrency exchanges also enjoy attractive business benefits. With Ripple solutions, exchanges can leverage the power of the XRP Ledger and its native digital asset XRP to reduce trading fees, lower compliance costs, and increase revenue by unlocking new use cases. can.
XRP is trading at $0.5249, with a market cap of $29.79 billion over the past day.
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