Ripple has been investing a lot into the digital asset custody services. These assets can be anything like real estate documents, financial asset, and variety of other assets which hold a real world value between the two parties.
Most of the exchanges, banks and the asset security services make use of the tokenized security service. However a lot of consumers out there are holding only the tokens and no other bigger digital assets that are custody worthy.
HSBC, DZ Bank and the few switzerland based banks are getting into the custody service. These services would be offered to enterprise, govt and other services which are given to big international and the domestic services.
Most of the international forex services, custody services and the places that are being offered with the contract on both sides. So you may find that in such case the digital asset and the smart contracts.
So how does the tokenized security service works? How does the custody service works with the tokens and the digital assets?
Image Credit: coinpedia
HSBC & Metaco Offering Tokenized Custody Service
Metaco is the service that Ripple has recently acquired which has created a platform which makes it easier for any bank or the company to deploy such custody services. You may find that HSBC does not usually get into the blockchain of it's own but the digital asset is now a reality. And they want to make it easier for the future investors to invest through the digital means and not going to be forced to worry about the security issues. So in that case there would be a good amount of the infrastructure and the security services you'd be seeing from them in near future.
The service they are going to offer would be getting through the metaco that has the harmony platform. Most of the open platforms can't be used for the banks and the enterprise application. And so the Ripple labs is in this domain, they would be offering the service like this for the longer time to the enterprise and the banks.And this is kind of like those premium platforms. So you would benefit as well. By seeing the custody service like this in that case we would be seeing them offered to consumers soon.
Metaco's Harmony Platform
JP morgan and the Deutsch bank are the two other banks in the EU that are going to be offering. Harmony platform basically allows the enterprise chains or the chains that are private to be deploying the digital assets oftheir own. This way they are not locked to the harmony but they can use the assets and also offer variety of the digital asset services to their consumers and the enterprises as well. Such platfoms is how the tokenized services and the tokens are offered to the users.
Now such platforms are making sure to deploy for the banks and the enterprises there. For example the metaco platform has been making sure that the banks are offering such for the custody services. HSBC Orion is one such deployed service using the metaco and now that service is offered by the Ripple services. I have learned that it can be possible for the digital asset market can be pretty good for the future services of development of digital asset markets. So it's a good progress for the digital token and the security custody solutions.
Crypto Custody
So what type of the services and the products can be added? As of now the govt has been keeping the forex, real estate and the tokens. You may find that the govt and the average consumer is going to keep those items in the custody. And the security and the smart contracts would be of prime importance in such case for the services that are being offered in this context. So in that case you can see the custody of the digital assets as a new form of the banking and the vault services type.
Investors invest with their digital asset, the bank becomes platform with the smart contract to put such digital asset into their vault. And the service with the custody platforms with the smart contracts make everything run smoother.
Legacy banking is changing and we are going to be seeing the vault and the digital asset security and the tokenized security services are going to be the new norm as well. So you have to assume that this is going to be a norm of the future. And we have to just adapt to it slowly. And not think that everything would be decentralized but more like banks adapting to blockchain and the digitalization of the banking services.