Ripple Highlights Custody Services as 37 Banks Prepare Euro Stablecoin - Cryptonews.net
Ripple highlighted its custody services on Nov. 9 as 37 banks prepare to launch Qivalis' euro stablecoin, with BBVA and DZ BANK illustrating different custody approaches.
Ripple outlined its custody services on Nov. 9 as it examined bank requirements for Qivalis' planned euro stablecoin. The company cited existing clients like BBVA and DZ BANK, describing how banks would need to safeguard client holdings, enforce operational controls, and connect digital assets with existing systems.
Now that the EU's Markets in Crypto-Assets regulation (MiCA) is established across Europe, the region's banks are emboldened to launch the digital asset offerings that their customers are asking for.
Ripple explained that individual banks could retain custody or delegate it to another provider. Its technology connects with banking software through application programming interfaces, enabling systems to exchange data and instructions. Software-defined policies govern access, approvals, and jurisdictional controls.
Bank Custody Models
BBVA's custody agreement with Ripple supports bitcoin and ether services for retail customers in Spain. The bank retains control of cryptographic keys and responsibility for protecting client assets, with operations extending to Switzerland and Turkey.
DZ BANK, a German cooperative banking group's central institution, selected Metaco's custody platform for institutional digital asset services. Metaco, a Swiss provider acquired by Ripple in 2023, helps the bank handle crypto securities under Germany's Electronic Securities Act.
The integration with DZ BANK's existing operations includes applications like a Siemens tokenized bond held by DZ BANK and Union Investment, demonstrating different uses for Ripple's technology across retail and institutional contexts.
Stablecoin Expansion
Qivalis, an Amsterdam-based joint venture, expanded to 37 member banks across 15 countries after adding 25 institutions in May. Participants include ING, BNP Paribas, BBVA, and DZ BANK.
De Nederlandsche Bank granted Qivalis authorization as an electronic money institution on Oct. 13, with permissions for issuance, distribution, and redemption. The license places Qivalis under ongoing DNB supervision.
The venture plans a full-reserve stablecoin model with each token backed 1:1 by reserves. Qivalis would handle issuance and redemption under its own authorizations, while individual institutions determine customer custody arrangements. The stablecoin issuance is planned for the coming months, subject to MiCA requirements.
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