Ripple Labs is making headlines on multiple fronts as it navigates both regulatory challenges and business expansion. The company has recently filed a trademark for ”Ripple Custody,” signaling its intent to enter the growing crypto custody market, a move that could broaden its services beyond payments. At the same time, speculation is mounting that Ripple’s long-standing legal battle with the US Securities and Exchange Commission (SEC) may be nearing its conclusion, with potential implications for XRP’s regulatory classification and the broader crypto industry. 

Ripple Labs Expands Into Crypto Custody With New Trademark Filing

Ripple Labs, the company behind the XRP token, is making strategic moves to solidify its presence in the cryptocurrency custody space. A recently filed trademark application for “Ripple Custody” suggests that the fintech firm is gearing up to offer crypto storage solutions for both individuals and institutions.

The trademark filing, submitted to the United States Patent and Trademark Office (USPTO), details four primary use cases for the new brand. One of the most significant descriptions states that the mark applies to “financial services, namely, custodial services in the nature of maintaining storage and possession of cryptocurrency […] for financial management purposes.” This move signals Ripple’s intent to enter the growing crypto custody market, which has become increasingly competitive amid rising institutional interest in digital assets.

Cryptocurrency custodians provide secure storage solutions for digital assets, reducing risks associated with private key loss, cyber threats, and unauthorized access. These services are particularly valuable to institutional investors, who require robust security measures and regulatory compliance.

The crypto custody industry has witnessed a surge in demand, especially after the US Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) in early 2024. With ETFs attracting billions of dollars in inflows, the need for institutional-grade custody solutions has become more critical than ever. Several major financial institutions, including Coinbase, Citi, and BNY Mellon, have established themselves as key players in this sector.

Ripple’s entry into the space could challenge these incumbents, particularly if it leverages its blockchain technology and existing network of financial partners. Given its history of providing enterprise solutions in cross-border payments, Ripple’s move into custody services could be a natural expansion of its offerings.

The trademark filing follows Ripple’s launch of a custody service in October 2024, marking its initial foray beyond its traditional focus on payment settlements. At the time, the company positioned the service as a means to diversify its revenue streams and expand its role in the broader crypto ecosystem.

Despite its latest trademark application, Ripple has remained tight-lipped about its specific plans for Ripple Custody. 

Beyond custodial services, the trademark filing also references “downloadable software for custody of cryptocurrency, fiat currency, virtual currency, and digital currency; downloadable software for transmission and storage of cryptocurrency, fiat currency, virtual currency, and digital currency.” This suggests that Ripple could be exploring the launch of a crypto wallet.

A proprietary wallet would allow Ripple to offer secure storage and transaction capabilities for XRP and potentially other digital assets. This move could serve as another revenue stream for the company, with transaction fees contributing to its financial model. If Ripple were to introduce a wallet solution, it would enter a competitive market already dominated by hardware wallets like Ledger and Trezor, as well as software wallets such as Trust Wallet and Exodus.

Given the company’s history, a Ripple-branded wallet could be deeply integrated with the XRP Ledger, offering seamless interaction for users holding XRP and other supported assets. It could also cater to institutional clients looking for enterprise-grade solutions.

Ripple’s expansion into custody services comes amid increasing regulatory scrutiny of the cryptocurrency industry. The company has been embroiled in a legal battle with the SEC since December 2020 over whether XRP should be classified as a security. While Ripple has achieved partial victories in court, the case remains ongoing, influencing the company’s strategic decisions.

By entering the custody space, Ripple may be positioning itself as a more traditional financial services provider, aligning with regulatory expectations and institutional standards. Crypto custody is a highly regulated business, with custodians required to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. If Ripple secures the necessary approvals, it could enhance its credibility among financial institutions and regulators.

What This Means for XRP and Ripple’s Future

Ripple’s move into custody services and potentially wallets could be a significant boost for the XRP ecosystem. By providing secure storage and transaction infrastructure, Ripple could enhance the utility and adoption of XRP beyond just cross-border payments.

Additionally, these developments could drive greater institutional engagement with Ripple’s offerings. If financial firms and investment funds begin using Ripple Custody, it could open the door for broader XRP adoption in institutional portfolios.

While Ripple has not officially confirmed the launch of any new products under the Ripple Custody brand, the trademark filing is a strong indication that the company is preparing to expand its footprint in the digital asset space. With institutional demand for secure crypto solutions growing, Ripple’s potential entry into custody services and wallets could mark a major milestone for both the company and the broader crypto industry.

Ripple vs. SEC: Is the Legal Battle Finally Coming to an End?

For nearly four years, Ripple Labs has been embroiled in a high-stakes legal battle with the SEC, a case that has been closely watched as a defining moment for cryptocurrency regulation in the United States. But according to new claims making waves in the crypto space, the lawsuit could be reaching its final chapter—sooner than many expected.

The latest buzz comes from Andrew “AP_Abacus” Parish, a well-known figure in the crypto space, who claims that two SEC insiders have confirmed that the case is ”very close to being over.” While this information remains unverified and unofficial, it has sent ripples of speculation through the crypto community.

If true, the implications of a conclusion to this lawsuit could be far-reaching. The case, which began in December 2020, has been a crucial test of how the SEC intends to regulate cryptocurrencies, particularly those issued by private companies. Initially, the SEC accused Ripple of conducting an unregistered securities offering through its sale of XRP, a claim Ripple has vehemently denied.

Now, new discussions are emerging about what XRP’s legal status might be once the dust settles.

Perhaps the most surprising rumor surrounding the case’s potential resolution is the idea that XRP could be reclassified as a commodity rather than a security. If true, this would move its oversight from the SEC to the Commodity Futures Trading Commission (CFTC), a shift that could change the way XRP is traded, regulated, and perceived by the broader financial world.

For years, Ripple has fought against the SEC’s classification of XRP as a security, arguing that it functions more like a currency or commodity than a stock. The idea that XRP could emerge from this legal battle with commodity status is a development few had anticipated. If this happens, it would not only be a victory for Ripple but also set a precedent for other cryptocurrency projects facing similar regulatory scrutiny.

One of the biggest concerns for Ripple throughout this legal saga has been the potential financial consequences. Originally, the SEC sought a staggering $2 billion fine from Ripple, a figure that threatened to cripple the company’s operations. However, that number was significantly reduced to $125 million in 2024—a major win for Ripple at the time.

Now, sources suggest that the final penalty could be ”greatly reduced” even further. If this turns out to be true, Ripple may walk away from this battle with far fewer damages than initially feared. More importantly, it would indicate that the SEC itself is re-evaluating its position on Ripple, XRP, and possibly its broader approach to crypto regulation.

Shifting Sentiment Within the SEC

A major factor that could be influencing this potential outcome is the changing leadership and priorities at the SEC. Under Gary Gensler, the agency has aggressively pursued legal actions against crypto companies, often without clear regulatory guidelines. However, increasing pressure from lawmakers, legal defeats in court, and growing institutional acceptance of crypto have forced the SEC to rethink its stance.

Ripple’s case is more than just a legal battle—it has become a symbol of how the US government handles cryptocurrency regulation. If the SEC is indeed close to settling, it may reflect a strategic decision to avoid setting a precedent that could backfire on the agency in future cases.

The speculation about an impending resolution has caught the attention of major crypto figures, including John Deaton, the attorney representing XRP holders in the case. His response? A simple eye emoji—a cryptic but telling signal that something significant may indeed be happening behind the scenes.

Other prominent voices in the crypto space have also chimed in, highlighting the potential impact of XRP securing a favorable outcome. If the SEC backs down, it could open the door for greater regulatory clarity for other cryptocurrencies, many of which have been waiting in limbo due to the uncertainty surrounding the Ripple case.