Ripple and Settlemint have joined forces to give regulated financial institutions a single system for issuing, holding and managing tokenized assets – a move that could reduce reliance on separate providers for custody, compliance, settlement and ongoing asset servicing.
The strategic partnership, announced on 1 September, links Ripple Custody with Settlemint’s Digital Asset Lifecycle Platform (DALP). The combined system is designed to allow institutions to oversee issuance, compliance, custody, settlement and servicing within one governed framework.
The arrangement is initially available in Asia Pacific, with plans to expand into other markets as demand from institutional customers grows.
“Financial institutions across Asia Pacific are putting digital assets to work. They are asking how to do more without stitching together separate solutions for custody, issuance and governance,” said Fiona Murray, Ripple’s managing director for Asia Pacific.
The companies say their offering is intended to address the operational gap between protecting digital assets and managing them once they have been issued.
Settlemint’s DALP provides controls covering issuance, compliance, settlement and servicing, while Ripple Custody is responsible for the storage and control of those assets. Operating the functions through one platform is intended to remove the need for institutions to assemble systems from multiple vendors, as well as limiting reconciliation gaps that can emerge when separate providers are used.
Ripple Custody provides the security, governance and compliance infrastructure needed to hold digital assets within a regulated institutional environment. Ripple has expanded its custody capabilities through work involving Securosys, Figment, Chainalysis and Palisade, adding key-management, transaction-screening, wallet and staking functions aimed at banks and other regulated enterprises.
Custody platforms are increasingly being used as control layers rather than simply as digital storage products. Ripple has presented its custody infrastructure as a base for payments, tokenization, staking and treasury management, as banks move projects beyond limited trials and towards production systems that require audit trails and formal approval controls.
Settlemint’s technology extends beyond asset protection by managing the processes that surround a token throughout its lifecycle. Real-world asset tokenization can involve legal structuring, custody, compliance, distribution, servicing and redemption, meaning the creation of a token is only one part of developing a regulated financial product.
The partnership comes as financial institutions explore ways to use blockchain technology for conventional assets, rather than focusing solely on cryptocurrency trading. Ripple is developing infrastructure covering issuance, stablecoins, trading, custody and credit as institutions adopt tokenized assets, with its XRPL ecosystem intended to connect those areas.
Ripple is already involved in live tokenization projects. One example is Aviva Investors’ tokenized liquidity fund share class on the XRP Ledger, which combines blockchain-based ownership records with established regulatory, custody and investor-protection structures.
The company has also expanded its ability to support large-scale wallet deployments and faster transactions through its acquisition of digital asset custody and wallet provider Palisade.
Adam Popat, chief executive of Settlemint, also addressed the partnership, with the companies positioning the opportunity as extending beyond crypto markets into the infrastructure used to issue and service traditional financial assets.
The potential market is significant. Boston Consulting Group estimates that tokenized real-world assets could reach $88 trillion by 2035 under its progressive scenario, equivalent to about 16% of global investable assets.
However, the consultancy’s rapid-expansion scenario also suggests that bank profits could be about 30% lower than in a market without digital asset adoption.
The Ripple-Settlemint agreement reflects the broader push to combine blockchain-based ownership and settlement with the governance, compliance and operational safeguards expected by regulated financial institutions. Its immediate focus is Asia Pacific, while future expansion will depend on the development of institutional demand in other markets.
