- Ripple Custody supports Hedera’s Hbar tokens through validated academic research, enabling secure cross-chain institutional asset management.
- Custody Wallet divides key controls between three stakeholders, adding a decentralized recovery tool and a compliance tool for regulated Crypto portfolio monitoring.
Ripple Custody has introduced support for Hedera Hashgraph’s Hbar Tokens. This was first examined in academic academic research studies. This study, published in the Future Internet Journal, demonstrates Ripple’s ability to manage Hedera-based assets on a collective multi-party calculation (MPC) wallet platform.
The research shows wallet solutions designed for regulatory agencies that handle assets such as XRP and HBAR on various blockchains are in the spotlight. With the implementation of shared custody, Ripple Custody strengthens its cross-chain asset management position by enabling it to safely handle Ethereum tokens, XRPL tokens and Hedera tokens on a single platform.
In this design, the Threshold Signature Scheme (TSS) divides the key across clients, custody providers, and wealth managers, ensuring there is no single point of failure risk. This allows agencies to manage secure crypto holdings while incorporating controls such as transaction whitelists, withdrawal caps and role-based approvals to comply with regulations.
The new wallet model promises secure and compliant crypto management
Another important feature built into the wallet is Derec, a distributed recovery protocol. This innovation eliminates the need for reminiscence and preservation of seed phrases. Rather, the recovery details are encrypted and distributed throughout the helper node. This is a distributed mechanism that protects against misuse in a way that securely recovers your credentials when necessary.
The study also creates a comparison table that explicitly states that Hedera is one of the networks supported by Ripple Custody. This confirmation will spread Ripple’s custody solution through Ethereum and XRPL, reaching Hedera’s blockchain network. This allows asset managers to manage tokenized assets in various chains within a single custody setup.
This study was produced by scholars associated with the UCL Center for Blockchain Technologies and the Exponential Science Foundation. Both organizations have close ties to Ripple and Hedera governance organizations. This shows that the common conforming design of wallets is harmonized at an academic and practical level with current institutional blockchain needs.
Institutional investors gain the flexibility of their cross-chain portfolio
Ripple Custody’s new support for Hedera allows institutional investors to retain tokenized securities, digital bonds and other blockchain-based assets in a single custody solution. This solution allows portfolio compliance and diversification, ensuring operational flexibility for hedge funds, private banks and wealth manager clients when operating in regulated markets.
The wallet also has built-in tools to adhere to standards that exist in places such as the US and EU territory. These features include transaction caps, whitelists, and role-based approvals to simplify financial regulatory compliance. Ensuring smart contract compatibility also promotes automatic compliance within institutional structures.
Their monetization plans are based on listing fees, assets under management fees, transaction costs, and performance fees. This is a financial arrangement that addresses services such as staking, lending, and liquidity provisioning without delegating control over intermediaries such as exchanges and custodians.
