John Deaton Describes Ripple’s Custody Infrastructure Expansion
John Deaton, a legal expert, claims that Ripple is playing the long game despite growing its investments in cryptocurrency custody. According to John Deaton, the shift in focus will allow Ripple to provide tokenization-as-a-service to international financial institutions, which might raise the price of XRP.
Ripple Focuses on Custodial Services
Crypto attorney John Deaton claims in an X post that Ripple Labs is promoting the addition of custodial offerings to its array of payment services. According to Deaton, a broad overview of Ripple’s operations will let the stablecoin issuer see the wider picture.
For Deaton, the most obvious indication of the company’s entry into custodial services is Ripple’s Hidden Road broker agreement. Before this, in 2023 and 2024, Ripple spent billions of dollars acquiring Metaco and Standard Custody.
Why Is Ripple Seeking Custodial Capabilities So Hard?
According to John Deaton, the main motivation behind the shift to custodial service is to establish Ripple as a one-stop shop for financial institutions using distributed ledger technology.
“Ripple becomes a one-stop shop for financial institutions integrating blockchain technology by offering custody alongside payments and stablecoin solutions,” Deaton stated.
The strong push for custodial services, according to Deaton, is an effort to “make up for lost time” after its protracted SEC litigation. Given that the custodial market capitalization is predicted to reach 16 trillion in market share by 2030, the cryptocurrency lawyer speculates that Ripple is eager to capture a portion of the industry.
According to Deaton, the ultimate goal is a significant push toward tokenization.
John Deaton claims that Ripple is putting itself in a position to move closer to offering banks tokenization-as-a-service. To do this, Ripple will use its expanding custodial infrastructure to give financial institutions a smooth way to tokenize conventional assets.
According to John Deaton, the upcoming offers would enable participants in the financial industry to tokenize equities and real estate from a single platform. In the end, the RLUSD stablecoin will play a big part in the XRP Ledger’s evolution becoming the center for tokenized assets.
With a CoinGape article forecasting the price of XRP if RLUSD gains 80% of USDT’s market share, the tokenization use case will increase the adoption of stablecoins. According to Deaton, Ripple is stepping up its efforts to significantly separate itself from its nearest rival.
“After being slowed down by the SEC lawsuit, it appears to me that Brad Garlinghouse is making up lost time,” Deaton added.
Circle’s Payment Network launch, which aims to provide real-time payments, is posing a growing threat to Ripple.
Forecast for XRP’s Price During the Acquisition Wave
An increase in the price of XRP in the upcoming months is anticipated as a result of Ripple’s wave of acquisitions. The price of XRP is currently at $2.30, up about 7% from the previous day.
RLUSD adoption levels will be a significant needle-mover for the price of XRP outside of the acquisition frenzy. If RLUSD volume increases by 45%, the price of XRP can reach $3.30, and the anticipated rally will be influenced by SEC authorization for ETFs.
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