Ripple Highlights Custody Technology as 37 Banks Prepare to Launch Euro Stablecoin Qivalis
Ripple is positioning its digital asset custody technology as a potential infrastructure component for Europe's expanding banking stablecoin market, as Qivalis advances plans for a euro-backed stablecoin supported by 37 banks across 15 countries.
In an assessment published on November 9, Ripple outlined the custody, governance and operational requirements financial institutions must address when handling digital assets. The company highlighted its relationships with BBVA and DZ BANK as examples of how traditional banks can integrate cryptocurrency custody and tokenized securities into existing financial operations.
The discussion comes as European banks explore digital asset services under the European Union's Markets in Crypto-Assets Regulation (MiCA), which provides a regulatory framework for crypto-asset activities across the bloc.
Ripple Explains How Banks Can Manage Digital Asset Custody
Ripple said banks entering the digital asset market must establish systems to protect customer holdings, manage operational risks and connect blockchain-based assets with existing banking infrastructure.
Cassie Craddock, Ripple's vice president and managing director, highlighted the impact of Europe's regulatory framework on financial institutions.
“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.”
According to Ripple, financial institutions can either maintain custody of customer assets themselves or delegate the responsibility to an external provider.
Its technology connects with banking systems through application programming interfaces (APIs), allowing different software platforms to exchange information and operational instructions. Ripple also uses software-defined policies to manage access permissions, approval procedures, separation of duties and jurisdiction-specific controls.
The company's broader digital asset offering covers issuance, custody, governance, settlement and redemption, providing infrastructure for different stages of institutional digital asset operations.
BBVA and DZ BANK Demonstrate Different Custody Applications
Ripple pointed to its work with Spanish bank BBVA as an example of digital asset custody for retail customers. The agreement supports Bitcoin and Ether services in Spain, with BBVA retaining control of its cryptographic keys and responsibility for safeguarding customer assets.
The relationship also extends to custody operations in Switzerland and Turkey, according to Ripple.
A separate example involves DZ BANK, the central institution of Germany's cooperative banking group. The bank selected Metaco's custody platform to support institutional digital asset services.
Metaco, a Swiss digital asset custody technology provider, was acquired by Ripple in 2023. DZ BANK sought to use the platform to manage crypto securities under Germany's Electronic Securities Act while maintaining integration with established capital-market processes.
Ripple's November 9 assessment also highlighted the platform's integration with DZ BANK's existing asset-management and custody operations.
One early application involved a Siemens tokenized bond held by DZ BANK and Union Investment, a German asset manager. The examples demonstrate how digital asset custody infrastructure can serve both retail cryptocurrency holdings and institutional securities.
Qivalis Expands to 37 Banks Across 15 Countries
Meanwhile, Qivalis is advancing its plans for a euro-denominated stablecoin through a banking consortium that has expanded to 37 member institutions across 15 countries.
The Amsterdam-based joint venture added 25 financial institutions in May. Its participants include ING, BNP Paribas, BBVA and DZ BANK.
The proposed stablecoin is designed to support payments, settlement and tokenized assets, which represent ownership or other asset-related rights through blockchain-based records.
Qivalis has also secured authorization from De Nederlandsche Bank (DNB), the Netherlands' central bank, as an electronic money institution.
According to DNB's register of authorized activities, Qivalis received permissions covering issuance, distribution and redemption, effective October 13. The authorization places the venture under the Dutch central bank's ongoing supervision.
Euro Stablecoin Planned Under a Full-Reserve Model
Qivalis intends to operate its stablecoin using a full-reserve structure, with each token backed by reserves at a 1:1 ratio.
The joint venture would manage token issuance and redemption under its own regulatory authorizations and technology infrastructure. Individual participating institutions would remain responsible for deciding how customer assets are held, including whether to provide custody directly or rely on an external service provider.
In an October 14 announcement, Qivalis outlined plans to begin issuance within the following months. The launch remains subject to applicable MiCA requirements and publication of the project's white paper.
Distribution is expected to involve eligible banks, cryptocurrency exchanges, payment providers and financial market infrastructure participants.
The developments highlight the growing intersection between traditional banking infrastructure and blockchain-based financial services in Europe. While Qivalis is preparing its euro stablecoin, Ripple is emphasizing the custody and operational systems banks may need to support digital assets across retail and institutional markets.
source: news,bitcoin
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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