Rewrite Ripple Custody Adds Support for HBAR with Shared MPC Wallet, Backed by New Academic Study
– Ripple Custody now supports Hedera’s native HBAR token, verified by a peer-reviewed academic study, advancing secure, cross-chain institutional crypto asset management.
– The solution employs a shared custody model using multi-party computation (MPC), distributing cryptographic key control across multiple parties for enhanced security and regulatory compliance.
Ripple Custody has officially added support for Hedera Hashgraph’s HBAR token, expanding its multi-chain custody capabilities. This development is underpinned by a peer-reviewed academic study published in the Future Internet journal. The study validates Ripple’s MPC (Multi-Party Computation) wallet technology’s ability to securely manage Hedera-based assets.
The platform introduces a robust wallet architecture tailored for regulated institutions, enabling the secure custody of assets like XRP and HBAR from multiple blockchain networks. This update positions Ripple Custody as a leader in cross-chain digital asset management for institutions, now incorporating support for Ethereum, XRPL, and Hedera networks within a single custody framework.
A key innovation in this custody model is the implementation of a Threshold Signature Scheme (TSS), which splits private key control among three entities: the client, the custody provider, and a designated wealth manager. This design prevents any single point of failure and increases security by distributing trust. Additionally, features like transaction whitelisting, withdrawal limits, and role-based authorization help institutions maintain adherence to compliance policies.
Enhanced Security Through Decentralized Recovery (DeRec)
Ripple’s updated wallet architecture integrates DeRec, a decentralized recovery mechanism that eliminates the need for traditional seed phrase storage. Instead, recovery credentials are encrypted and distributed across multiple helper nodes. This allows users to regain access securely without exposing sensitive information to risks of loss or theft.
The academic study further provides a comparative overview of networks now supported by Ripple Custody, confirming Hedera’s inclusion alongside Ethereum and XRPL. This inclusion broadens the scope for asset managers to oversee tokenized investments across diverse blockchains using a unified custodial interface.
The research was conducted by experts from the University College London (UCL) Centre for Blockchain Technologies and the Exponential Science Foundation—both organizations with strong affiliations to Ripple and Hedera. Their findings affirm the feasibility and importance of shared custody models in meeting the operational and compliance needs of modern institutional blockchain infrastructure.
Cross-Chain Asset Management for Institutional Clients
With Hedera now integrated into Ripple’s custody solution, institutional investors can easily manage tokenized securities, digital bonds, and other blockchain-based financial instruments. This integration ensures operational flexibility while maintaining compliance with strict financial regulations in jurisdictions such as the U.S. and the European Union.
Built-in compliance tools like transaction caps, address whitelisting, and role-based permissions enable seamless adherence to regulatory guidelines. Additionally, the custody platform supports smart contract integration, which aids in process automation and regulatory checks for institutional structures.
Revenue for the custody service is generated through a variety of channels, including asset listing fees, assets under management (AUM) fees, transaction processing charges, and performance-based incentives. The platform also supports additional services such as staking, lending, and liquidity provisioning—without requiring institutions to hand over custody to third-party exchanges or brokers.
By supporting HBAR, Ripple Custody continues to evolve into a comprehensive solution for secure, compliant, and scalable institutional asset custody across the growing digital asset space.
Ripple custody expands to support HBAR
Ripple is making waves once again—this time by bringing Hedera’s native HBAR token under its institutional-grade custody umbrella. Backed by a rigorous, peer-reviewed academic study published in the Future Internet journal, this strategic move signals a new era for Ripple’s multi-chain custody solution and its growing dominance in cross-asset digital custodianship.
Previously known for its robust support of XRP and Ethereum-based assets, Ripple’s custody platform now extends its reach to include the Hedera network, a high-speed, low-fee blockchain designed for enterprise-grade applications. The integration of HBAR isn’t just a technical upgrade—it’s a definitive nod to the increasing demand for interoperable, secure, and regulation-ready asset management solutions in the crypto economy.
At the heart of this expansion is Ripple’s commitment to institutional investors. Whether it’s a hedge fund managing tokenized securities or a traditional bank exploring digital bonds, the addition of HBAR opens new doors for diversified portfolio strategies across multiple blockchain ecosystems—all within a unified, secure custody interface.
Here’s what makes this development particularly exciting for crypto investors, especially those with a keen interest in XRP and the broader Ripple ecosystem:
- Academic Validation: The MPC-based custody solution has been scientifically vetted by researchers from University College London and the Exponential Science Foundation, lending credibility and confidence to institutional users.
- Interoperability in Action: With support for XRPL, Ethereum, and now Hedera, Ripple Custody is positioning itself as a central hub for cross-chain asset management—an essential feature for the future of decentralized finance (DeFi) and tokenized real-world assets (RWAs).
- Institutional Readiness: Built-in compliance features like transaction limits, whitelisting, and role-based permissions ensure that institutions can meet evolving regulations in top-tier jurisdictions like the U.S. and EU.
For XRP enthusiasts, this move adds another feather in Ripple’s cap. It not only emphasizes Ripple’s continued innovation in the digital finance space but also strengthens the case for XRP’s interoperability with other high-performance layer-1 networks like Hedera. The synergy between Ripple and Hedera could accelerate enterprise blockchain adoption, particularly in sectors like supply chain management, tokenized carbon credits, and decentralized identity solutions.
In a market increasingly focused on security, compliance, and operational efficiency, Ripple’s expansion into HBAR custody is more than just another technical integration—it’s a strategic alignment with the future of institutional crypto investing. As the digital asset landscape matures, platforms offering secure and compliant multi-chain custody will likely become the backbone of the next financial revolution.
Shared MPC wallet integration details
What sets Ripple Custody apart in the crowded world of digital asset safekeeping is its cutting-edge use of shared Multi-Party Computation (MPC) wallets. This isn’t your average cold storage solution—Ripple’s shared MPC architecture is a cryptographic tour de force that redefines how institutions manage private keys. In simple terms, no single party ever holds the full private key. Instead, the key is split into multiple shares, each controlled by a different entity. This ensures that no single breach—or rogue actor—can compromise the wallet’s security.
In the case of HBAR, the shared MPC model operates under a Threshold Signature Scheme (TSS), where three parties—typically the institutional client, Ripple as the custody provider, and a trusted third party such as a wealth manager or compliance officer—must collaborate to authorize transactions. This tri-party setup creates a resilient security perimeter, mitigating the risks of internal fraud, external hacks, or regulatory non-compliance. It’s like having a vault that requires three different keys held in three different cities to open.
But the brilliance doesn’t stop there. Ripple has embedded a suite of compliance and operational controls into its MPC framework, making it tailor-made for institutions navigating the murky waters of global regulation. These controls include:
- Transaction Whitelisting: Only pre-approved addresses can receive funds, preventing unauthorized transfers.
- Withdrawal Limits: Daily and per-transaction limits can be customized to align with internal risk policies.
- Role-Based Access Control (RBAC): Granular permissions ensure that only authorized personnel can initiate or approve certain actions—think CFOs approving large withdrawals while analysts can only view balances.
And let’s talk about recovery—a nightmare scenario in traditional crypto custody. Lose your seed phrase, and it’s game over. With Ripple’s shared MPC wallet, that’s no longer the case. The integration of a novel decentralized recovery mechanism (DeRec) lets institutions regain access to their wallets without ever needing to store a vulnerable seed phrase. Instead, recovery credentials are encrypted and redundantly stored across a distributed network of helper nodes. If a key share is lost, the system can securely reconstruct it using consensus from these nodes, ensuring business continuity without compromising security.
For the technically inclined, Ripple’s implementation of DeRec aligns with cryptographic best practices, using Shamir’s Secret Sharing and zero-knowledge proofs to validate identity and authorization without revealing sensitive data. It’s a recovery system that even the most paranoid CISO would approve of.
What does this mean for XRP holders and crypto-savvy investors? It demonstrates Ripple’s commitment to building institutional-grade infrastructure that doesn’t just keep up with the times—it anticipates them. By combining MPC with Hedera support and compliance-first tooling, Ripple is laying the groundwork for a world where tokenized assets, NFTs, and stablecoins can be securely managed across multiple chains from a single, fortified interface.
If you’re an investor watching the evolution of digital custody, this is a clear signal: the future is MPC-based, multi-chain, and regulation-friendly. With Ripple leading the charge, the convergence of security, usability, and compliance is no longer a dream—it’s here, and it’s holding your HBAR.
Implications for Hedera and enterprise adoption
Ripple Custody’s integration of HBAR marks a watershed moment for enterprise-grade blockchain adoption—and not just for the Ripple ecosystem. For Hedera, this move is a strategic leap forward, catapulting its native token into the portfolios of global institutional investors who demand security, compliance, and multi-chain operability. The shared MPC wallet model not only enhances trust but also unlocks new pathways for Hedera’s enterprise use cases to scale in regulated environments.
Hedera has long positioned itself as the go-to network for real-world applications, thanks to its high throughput, low fees, and asynchronous Byzantine Fault Tolerance (aBFT) consensus. But one of the missing links for institutional adoption has been robust, compliant custody infrastructure. With Ripple now providing that missing piece, Hedera is poised to gain serious traction in sectors like supply chain logistics, ESG markets, and financial services.
- Enterprise Integration: Fortune 500 companies already building on Hedera—think IBM, Google Cloud, and Boeing—can now securely store and manage HBAR and associated assets using Ripple’s custody interface. This reduces onboarding friction and enhances scalability.
- Tokenized Asset Support: Institutional players looking to issue or manage tokenized assets on Hedera—whether carbon credits, digital bonds, or loyalty points—now have a compliant way to do so, thanks to Ripple’s custody layer.
- Regulatory Alignment: As jurisdictions tighten their grip on crypto compliance, Ripple’s custody solution offers a rare combination of crypto-native flexibility and TradFi-level governance. This is a game-changer for enterprises exploring blockchain without running afoul of regulators.
For XRP enthusiasts and Hedera supporters alike, the synergy between these two ecosystems could be the beginning of a powerful alliance in institutional blockchain infrastructure. Both networks are designed with performance, scalability, and real-world utility in mind—making them natural allies in the push toward mainstream adoption. The addition of HBAR into Ripple’s custody suite not only validates Hedera’s tech but also increases its visibility within Ripple’s growing institutional clientele.
Moreover, this partnership could spark a wave of cross-network innovation. Imagine decentralized identity solutions on Hedera being used to verify compliance for tokenized securities managed via Ripple Custody. Or supply chain data recorded on Hedera being collateralized into DeFi instruments on XRPL. The possibilities are as vast as they are exciting.
Let’s not forget the signal this sends to the broader market. Institutional investors are watching closely for infrastructure that enables both security and interoperability. With Ripple Custody supporting HBAR through a shared MPC architecture, it’s clear that Hedera is no longer flying under the radar—it’s entering the institutional spotlight. And in a landscape where trust, transparency, and tech stack compatibility are paramount, that spotlight could soon turn into a floodlight.
In short, this integration isn’t just a feature update—it’s a strategic alignment that could redefine how enterprises adopt and scale blockchain solutions. With Ripple and Hedera moving in lockstep, the era of siloed blockchain ecosystems may finally be giving way to a more interconnected, institutionally viable future.
Future outlook for cross-asset custody solutions
As the digital asset ecosystem continues to mature, the demand for secure, interoperable, and regulation-ready custody solutions is reaching a fever pitch. Ripple Custody’s move to integrate HBAR through a shared MPC wallet isn’t just a nod to innovation—it’s a blueprint for what the future of institutional crypto custody will look like. And spoiler alert: it’s multi-chain, MPC-secured, and compliance-first.
The trajectory for cross-asset custody platforms is clear. Institutions are no longer content with fragmented systems that silo assets by blockchain. They want unified dashboards, real-time compliance indicators, and custody solutions that handle everything from Bitcoin to tokenized real estate—all without compromising on governance or security. Ripple is positioning itself to be that one-stop-shop, and the inclusion of HBAR is a sign that it’s listening to what the market actually needs.
Looking ahead, we can expect several trends to shape the evolution of cross-chain custody solutions:
- Expansion Beyond Layer 1 Tokens: While XRP, ETH, and HBAR are foundational assets, the next wave will likely include support for Layer 2 scaling solutions, stablecoins, and tokenized real-world assets (RWAs) like real estate, equities, and commodities.
- Programmable Compliance: Smart contract-based compliance tools will become the norm. Think automated KYC/AML checks, real-time tax reporting, and dynamic risk scoring—all embedded directly within the custody layer.
- Interoperability as a Service: Custody providers will evolve into data-rich hubs that not only safeguard assets but also facilitate seamless movement between chains via native bridges, wrapped tokens, or liquidity pools.
- AI-Powered Risk Management: With the rise of AI, expect predictive analytics to play a larger role in custody. Machine learning algorithms could detect anomalies, flag suspicious withdrawals, and suggest optimized liquidity routes—all in real time.
From an investment perspective, this creates a compelling narrative for Ripple and XRP. As Ripple’s custody platform becomes more integral to institutional operations, XRP stands to benefit as both a liquidity bridge and a governance token in future product iterations. Investors should keep an eye on how Ripple leverages XRP within its custody stack—whether for transaction fees, staking, or even governance of decentralized recovery nodes.
Meanwhile, Hedera’s inclusion sets a precedent for other enterprise-grade networks. Chains like Algorand, Avalanche, and Polkadot could be next in line, especially if they can meet the technical and regulatory standards Ripple demands. This opens up a competitive landscape where blockchain networks must not only prove their scalability but also their compatibility with institutional-grade custody frameworks.
Let’s not forget the bigger picture: the convergence of traditional finance (TradFi) and decentralized finance (DeFi) hinges on infrastructure like this. Banks, hedge funds, and asset managers are not going to jump into DeFi with MetaMask wallets and scribbled-down seed phrases. They need custody tools that mirror the controls and auditability they’re used to—just with a Web3 twist. Ripple’s shared MPC wallet is precisely that twist. It’s TradFi-grade security with DeFi-grade flexibility.
In the months ahead, we’ll likely see Ripple Custody continue to roll out new integrations, enhance DeRec capabilities, and perhaps even introduce tokenization services that allow institutions to mint and manage their own digital assets within the custody platform. If Ripple plays its cards right, it could become the AWS of digital asset custody—ubiquitous, secure, and indispensable.
For investors, this is more than just technical wizardry. It’s a signal that the infrastructure underpinning tomorrow’s financial system is being built today. And with Ripple at the helm, XRP and HBAR are no longer just tokens—they’re tools in a much larger, institutionally-driven transformation of global finance.