At the headquarters of Absa Bank in Johannesburg, South Africa, a team of technicians is debugging a next-generation digital asset custody platform, marking a significant advance for financial institutions on the African continent into the blockchain world.
Releasing the potential of Africa's digital assets through blockchain technology is no longer just a slogan; it is a reality that is happening.
On October 15, Ripple and South Africa's Absa Bank jointly announced the establishment of a strategic partnership to launch Africa's first institutional digital asset custody platform. This collaboration enables Absa Bank to leverage Ripple's institutional-grade digital asset custody technology to provide clients with secure and compliant storage solutions for tokenized assets and cryptocurrencies.
01 Key Details of the Partnership
● Absa Bank will integrate Ripple's enterprise digital asset custody infrastructure, allowing it to manage and store tokenized assets and cryptocurrencies for institutional clients.
● Reece Merrick, Managing Director for the Middle East and Africa at Ripple, stated: "Africa is undergoing a significant transformation in how value is stored and exchanged. Our partnership with Absa underscores Ripple's commitment to unlocking the potential of digital assets on the African continent."
Data Metrics
Specific Data
Assets Managed by Absa Bank
2.07 trillion South African Rand (119.5 billion USD)
Absa Bank Annual Revenue
6.34 billion USD
RLUSD Stablecoin Supply
Over 700 million USD
Total Supply of XRP
100 billion coins
Circulating Supply of XRP
Approximately 58.5 billion coins (58.5% of total supply)
Proportion of Financial Leaders in the Middle East and Africa Recognizing the Speed of Blockchain Payments
64%
Source: AiCoin Compilation
02 Why Choose Africa
● Africa is one of the fastest-growing fintech markets globally, with a rapidly increasing demand for compliant digital asset infrastructure.
● According to Ripple's "New Value Report 2025," 64% of financial leaders in the Middle East and Africa believe that faster payment and settlement speeds are the primary reasons for adopting blockchain currencies in cross-border transactions. This data reveals the urgent need for efficient, low-cost financial solutions in the African market.
● Absa Bank is a key player in the African financial landscape, managing assets worth 2.07 trillion South African Rand (approximately 119.5 billion USD) as of the end of 2024. The bank's revenue last year also reached 6.34 billion USD, providing a solid financial foundation for its digital asset custody business.
03 Ripple's Custody Network Expansion
This partnership further strengthens Ripple's global custody network, which now spans Europe, the Middle East, Asia-Pacific, Latin America, and Africa.
Ripple's custody technology meets stringent global security, operational, and regulatory standards, ensuring that financial institutions can safely enter the digital asset space while remaining fully compliant. In recent years, Ripple has accelerated its custody business layout through a series of partnerships and acquisitions:
| Time | Event | Core Content | Significance and Progress | |---------------|--------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------------------| | End of 2023 | Partnership with HSBC | Providing digital asset custody services for tokenized securities to institutional clients. | Partnering with top global financial institutions; focusing on tokenizing traditional financial assets to differentiate from cryptocurrency custody; planned for use in 2024. | | June 2024 | Acquisition of Standard Custody & Trust Company | Acquiring a limited-purpose trust company regulated by the New York Department of Financial Services (NYDFS). | Provides Ripple with a key regulatory license, enabling it to conduct cryptocurrency custody and settlement business in the U.S. | | October 2024 | Partnership with BBVA Bank | Providing digital asset custody technology for BBVA and its Turkish subsidiary, supporting retail platform clients in buying, selling, and holding cryptocurrencies. | Marks the successful integration of Ripple's custody technology into the actual retail operations of a major European bank. | | October 2024 | Partnership with Bahrain Fintech Bay | Plans to introduce Ripple's digital asset custody solutions and RLUSD stablecoin to financial institutions in Bahrain. | A key step in Ripple's strategic expansion in the Middle East; aims to leverage the new local stablecoin regulatory framework to promote the integrated application of custody and stablecoins. |
Source: AiCoin Compilation
04 RLUSD Stablecoin's African Deployment
In addition to custody services, Ripple is also actively expanding the influence of its USD-backed stablecoin RLUSD in Africa.
Last month, Ripple introduced RLUSD to Africa through partnerships with Chipper Cash, cryptocurrency exchange VALR, and cryptocurrency payment service Yellow Card.
RLUSD was launched at the end of 2024, issued by a New York trust company and regulated by the New York State Department of Financial Services.
The supply of this stablecoin has exceeded 700 million USD, distributed across the Ethereum and XRP ledgers.
Beyond cross-border payments, RLUSD is finding applications in real-world financial and humanitarian initiatives.
In Kenya, Mercy Corps Ventures is piloting RLUSD in a climate insurance project, where funds are automatically released when satellite data detects drought or excessive rainfall, ensuring a rapid response during crises.
05 Integration of Traditional Finance and Blockchain
The partnership between Ripple and Absa Bank is another example of the increasing integration of traditional finance and blockchain technology.
This trend is evident globally:
● The world's largest asset management company, BlackRock, has seen strong quarterly earnings and revenue from its cryptocurrency products.
● Morgan Stanley recently informed its financial advisors that all clients will be able to invest in cryptocurrency funds.
● The world's largest custodian bank, BNY Mellon, is exploring tokenized deposits.
Nation-states are also slowly joining the cryptocurrency trend:
● Earlier this month, the Luxembourg sovereign wealth fund allocated 1% of its portfolio to a Bitcoin ETF.
● The Norwegian sovereign wealth fund has also increased its indirect Bitcoin exposure by 192% over the past year.
As more financial institutions follow in Absa's footsteps, a more inclusive and efficient financial ecosystem will gradually take shape on the African continent.
Blockchain technology is quietly transforming the financial infrastructure of the African market, adding a crucial piece to the global digital asset landscape.
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