In an announcement dated April 30, 2020, the world’s first digital asset bank, Sygnum, stated that it had launched Ripple’s XRP protocol digital token on its platform.
Sygnum Bank Introduces Support for XRP
Switzerland-based Sygnum Bank AG has announced the availability of the XRP token for custody, trading, and credit services on its banking platform.
The third-largest cryptocurrency in the world, XRP token trails Bitcoin (BTC) and Ether (ETH) in terms of total market cap. Together, these three digital tokens account for a whopping 80 percent of the total market cap of protocol-based tokens.
Having integrated XRP completely into its regulated banking platform, Sygnum clients will now be able to invest in the token through the bank’s e-banking portal or trading desk. They will also be able to transfer the token into their custodian wallet, the announcement reads.
The support for XRP also gives Sygnum clients an opportunity to further diversify their token portfolios.
Established to foster blockchain-powered low-cost, rapid monetary transactions, Ripple’s XRP Ledger aims to enable financial institutions the world over to execute cross-border remittances within seconds.
The ledger enables quick monetary transactions by using a unique consensus mechanism that is dependent on a network of validators that approve the validity of each transaction. Unlike the vast majority of other protocols, XRP-based transactions don’t require any mining. Rather, a finite supply of XRP is used to function as a bridge currency in cross-border payments.
Commenting on the development, Simon Walchli, Head of Custody, Sygnum, said:
“Clients can now hold their XRP in our regulated custody solution, which is co-developed with Swisscom and architected to provide institutional-grade security. The addition of XRP allows clients to further expand and diversify their digital asset portfolios.”
Sygnum Bank Spearheading Crypto Adoption in Banks
Known as the first crypto bank in the world, Swiss bank Sygnum has pioneered digital token adoption among banks with a global clientele.
BTCManager reported in August last year how Sygnum was seeking a banking license from Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), to enable it to offer brokerage, tokenization, and other crypto-related services to qualified investors in the region.