Ripple Expands to Africa With Absa Bank in $100B Digital Asset Custody Push

 

Ripple Expands Institutional Custody Network to Africa Through Strategic Partnership With Absa Bank

Ripple, a global leader in blockchain-based financial infrastructure, is extending its institutional custody network into Africa through a groundbreaking partnership with Absa Bank, one of South Africa’s largest financial institutions. The move marks Ripple’s first major institutional custody client on the continent and signals Africa’s growing role in the global digital asset economy.

This partnership will enable Absa to use Ripple’s digital asset custody technology to store and manage cryptocurrencies and tokenized assets on behalf of its clients. The solution will allow Absa to deliver secure, regulated, and compliant custody services—addressing one of the key barriers that has limited institutional participation in Africa’s rapidly growing blockchain ecosystem.

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Ripple’s Strategic Push Into Africa

Ripple’s latest expansion is part of a broader strategy to become the backbone of institutional blockchain infrastructure worldwide, particularly in emerging markets. Africa represents one of the most promising frontiers for blockchain adoption, with increasing regulatory clarity and a fast-growing appetite for digital assets among banks, fintech firms, and payment providers.

Absa Bank, which oversees assets worth 2.07 trillion South African rand (approximately $119.5 billion) and generated over $6.3 billion in revenue last year, is a major financial powerhouse across sub-Saharan Africa. The integration with Ripple positions Absa at the forefront of digital transformation in banking—blending traditional finance with blockchain-powered innovation.

Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, described the partnership as a “milestone in accelerating blockchain adoption across regulated institutions.”

“Africa’s financial landscape is evolving quickly, and banks like Absa are key to unlocking the next phase of digital finance,” Merrick said. “Through our technology, we’re enabling institutions to safely manage and integrate tokenized assets into their service offerings.”

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Ripple’s Custody Solution Gains Global Momentum

Ripple launched its institutional custody service earlier this year following the acquisition of Standard Custody, a New York-based digital asset custodian licensed under U.S. banking laws. That acquisition provided the technical and regulatory foundation for Ripple’s current infrastructure, which is now live with clients across Europe, Asia, and Latin America.

By bringing its custody platform to Africa, Ripple cements its position as one of the few global players offering bank-grade digital asset storage solutions. The service is designed for regulated institutions—including banks, asset managers, and fintech companies—that require enterprise-level security, compliance, and scalability.

Unlike retail crypto wallets, Ripple’s custody technology integrates directly with banking infrastructure, allowing institutions to tokenize, hold, and settle digital assets under existing regulatory frameworks.

Jack McDonald, Ripple’s Senior Vice President of Stablecoins, noted that institutional custody is a cornerstone of Ripple’s long-term strategy:

“Our focus is on helping institutions operate confidently in the blockchain economy. Custody is the foundation of everything—whether it’s tokenized deposits, stablecoins, or cross-border payments. Absa’s trust in our system reinforces Ripple’s position as the go-to partner for regulated entities.”

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Africa’s Growing Appetite for Tokenized Finance

Ripple’s entrance into Africa’s custody market comes amid surging demand for tokenized assets and blockchain-based payments. According to Ripple’s 2025 New Value Report, 64% of finance leaders in the Middle East and Africa say the main motivation to adopt blockchain technologies is the ability to achieve faster settlements and lower transaction costs.

Africa’s financial sector has already demonstrated a remarkable capacity to leapfrog traditional systems. Countries such as Nigeria, Kenya, and South Africa are embracing blockchain to enhance financial inclusion, cross-border remittances, and government-backed digital currency pilots.

Ripple’s collaboration with Absa also builds on the company’s existing partnerships on the continent. Earlier this year, Ripple worked with Chipper Cash, VALR, and Yellow Card to expand the use of its RLUSD stablecoin across multiple African markets. This stablecoin integration supports fiat-to-crypto conversion, merchant settlements, and peer-to-peer transfers in local currencies.

These initiatives highlight how Ripple’s ecosystem is evolving beyond cross-border payments—positioning itself as a complete infrastructure provider for tokenized economies.

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Regulatory Progress Paves the Way

One of the biggest challenges to blockchain adoption in Africa has been the lack of regulatory clarity. However, several governments are now moving toward establishing clear guidelines for digital asset management and crypto custody operations.

South Africa, in particular, has taken a progressive approach. The Financial Sector Conduct Authority (FSCA) recently issued licensing frameworks for crypto service providers, ensuring that banks and fintechs can engage in digital asset activities under regulatory oversight.

Ripple’s strong compliance credentials—backed by more than 60 global licenses and registrations—give it an advantage in entering such regulated markets. Its partnership with Absa could therefore serve as a template for future collaborations across the continent, encouraging other banks to explore tokenized financial services.

“Absa’s adoption of Ripple’s custody platform is a defining step for Africa’s financial industry,” said Mark Jensen, an independent fintech analyst based in Johannesburg. “It signals that major institutions now see blockchain not as a risk, but as a strategic infrastructure layer.”

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Building a Bridge Between Traditional and Digital Finance

Through this partnership, Absa Bank will be able to provide clients with a trusted environment to hold and transact digital assets while complying with international anti-money laundering (AML) and know-your-customer (KYC) standards. The system’s architecture supports both self-custody and institutional co-custody models, allowing banks to maintain operational control over client assets.

In addition to cryptocurrencies like Bitcoin and XRP, Absa will be able to store tokenized securities, commodities, and real-world assets (RWAs)—a growing market segment expected to surpass $16 trillion globally by 2030, according to Boston Consulting Group.

Ripple’s infrastructure ensures these assets can be safely held, audited, and transacted on-chain while maintaining the legal protections that traditional custody arrangements provide.

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A New Era for Ripple and African Finance

Ripple’s expansion into Africa through Absa underscores the continent’s strategic importance in the future of digital finance. As blockchain adoption accelerates, institutions across Africa are expected to integrate tokenized systems not just for trading or payments, but for broader use cases such as supply chain transparency, real estate tokenization, and digital identity systems.

The Absa partnership also reflects Ripple’s transformation from a cross-border payment innovator into a full-scale blockchain service provider—offering everything from stablecoins and DeFi solutions to tokenization infrastructure and regulatory-grade custody.

With Ripple’s technology underpinning Absa’s operations, South Africa could become a hub for regulated digital asset services in Africa, setting a benchmark for other national banks in the region to follow.

As Reece Merrick emphasized:

“Our mission is to make digital finance more inclusive, transparent, and secure. Partnering with Absa is more than a business move—it’s about empowering a continent that’s ready to lead the next phase of blockchain adoption.”

Source: CMC

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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