- •Ripple and Absa debut institutional crypto custody to meet tokenized asset demand.
- •Finance leaders in MEA view faster settlement as the main driver for blockchain use.
- •RLUSD trials in Kenya highlight stablecoin applications beyond payment services.
Ripple has confirmed a collaboration with Absa Bank in South Africa to introduce institutional-grade custody services. The deal responds to rising demand for secure storage of tokenized assets and follows increased regulatory clarity around alternative investments in the region.
Absa and Ripple in Africa
Absa, one of Africa’s largest financial institutions, will integrate Ripple’s custody technology to manage cryptocurrencies and tokenized holdings for institutional clients. The bank aims to provide compliant and scalable storage backed by established operational standards.
This is Ripple’s entry into the African custody market after deployments in Europe, the Middle East, Asia-Pacific and Latin America. Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, said the agreement shows changes in how value is held and transferred across the continent.
He noted the company’s focus on digital asset infrastructure that aligns with regulatory and security requirements. The partnership follows earlier deployments of Ripple’s payment technology with firms such as Chipper Cash.
The custody expansion comes as more regional banks prepare digital asset strategies. Ripple holds more than 60 licenses and registrations globally, which enables traditional institutions to access tokenized finance without altering internal compliance frameworks. The company’s custody platform is built with audit methods and operational safeguards for regulated environments.
Growing Demand Across Emerging Markets
The rollout comes as institutional interest in blockchain-based products accelerates in Africa. According to Ripple’s 2025 New Value Report, 64% of finance leaders in the Middle East and Africa consider faster settlement times a primary driver for adopting blockchain currencies in cross-border payments. That demand has increased pressure on financial institutions to offer secure digital storage.
Robyn Lawson, Head of Digital Product and Custody at Absa Corporate and Investment Banking, said the bank wants to meet client expectations with “secure, compliant, and robust” custody options.
She pointed to the need for tested platforms that satisfy both operational oversight and local regulatory demands. Absa already manages traditional custody services and will add digital assets through Ripple’s infrastructure.
The partnership fits into the wider move toward using blockchain-based products. Earlier this year, Ripple said its USD-backed stablecoin, RLUSD, would launch in some African markets. The rollout includes platforms like VALR, Yellow Card, and Chipper Cash. The stablecoin which was launched in 2024 by a New York regulated trust company, has surpassed $700M in supply on Ethereum and the XRP Ledger.
Furthermore, real-world pilots show how tokenized assets are being used. In Kenya, Mercy Corps Ventures is testing RLUSD in climate risk insurance programs. One initiative uses satellite data to trigger automatic disbursement from escrow during drought conditions. Another pilot releases funds during extreme rainfall, reflecting how stablecoins are being used beyond payment channels.
Ripple Expands Its Regional Footprint
The custody agreement extends Ripple’s operations on the continent beyond payment corridors. Absa’s banking network covers several African markets, and the firm plans a gradual rollout of tokenized asset storage. Initial markets include South Africa, Kenya and Mauritius, with future expansion expected in Uganda and Ghana.
Ripple’s earlier work with Chipper Cash showed that using crypto can make sending money across borders faster and easier. The new custody service aims for the same goal but focuses on big institutions instead of everyday users. Ripple’s system lets banks keep digital assets safely without having to change how their current systems work.
The company also keeps stressing the importance of following regulations. Its network is in five continents and supports institutions entering digital finance under existing oversight. Absa’s move could set an example for other banks in the region as they figure out how to safely manage digital assets under new rules.
Fintech companies are also getting involved. A Swiss firm called AMINA recently started supporting RLUSD, giving clients options to store and trade it. This shows that traditional banks and digital asset firms are beginning to work more closely together.
Meanwhile, Ripple’s new partnership with Absa puts the bank at the heart of Africa’s shift toward regulated digital assets. The deal will let Absa safely store tokenized assets and highlights how more banks across the region are starting to adopt similar technologies. As financial institutions implement blockchain infrastructure, partnerships of this scale indicate how digital custody is entering standard operations.