Ripple CEO: Banks will store XRP and digital assets themselves
The adaptation of crypto currencies is progressing independently of the current bear market. Ripple’s CEO is confident that banks will move next year to store digital assets, such as XRP, through custody solutions.
Brad Garlinghouse, CEO of Ripple Inc., is very optimistic that banks will have developed custody solutions themselves by the middle of next year in order to be able to safely store large amounts of capital from institutional investors. This will have a significant positive impact on the use of digital currencies in our traditional currency system.
At the Singapore FinTech Festival in Sinagpur, Garlinghouse says he believes it is very likely that banks will offer crypto-currency-based financial services from 2019:
I think one of the things that will surprise us in a year is that banks will directly hold digital assets.
I think now, we think about it and think that there will be no way – they are too conservative. And I think what you see happens in two stages. On the one hand, the banks see that a lot of money can be earned through the worldwide exchange of digital assets and that the banks are profit-oriented.
The second point, […] is regulatory clarity, and the regulatory framework allows banks and financial institutions to enter these markets.
Garlinghouse and Mike Novogratz, CEO of Galaxy Digital, agree that the next bull run will take place as soon as there is legal clarity and financial institutions can simply enter the crypto market without much hesitation. In his opinion, the first banks will come from China, as they have been far more innovative in the past than in Germany and the USA (freely translated):
I also expect that there will be banks in the ASEAN markets where this regulatory clarity will be created and there will be a lot of progressive, forward thinking. They will be the first to actually allow the retention of crypto assets in their accounts.
Asia has become one of the most important source markets for Ripple and its practical applications. Through continued expansion in Asia, Ripple was able to penetrate this highly competitive sector through partnerships with LianLian and American Express.
