5th January 2025 – (New York) As we delve into the year 2025, two significant narratives are capturing the attention of investors and enthusiasts alike. First, there’s the ongoing discussion surrounding the benefits of managed versus self-custody when it comes to handling digital assets like XRP. Simultaneously, the bullish trajectory of XRP itself has ignited speculation about its potential to reach staggering heights, with some analysts predicting a price tag of $50 or more in the coming year.
Ripple, the company behind the XRP Ledger, has recently shed light on the key distinctions between managed and self-custody, outlining the advantages and risks associated with each approach. In a concise video featuring Yana Novikova, Ripple’s Senior Director of Custody and Stablecoin Products, a clear picture emerges for those grappling with this decision.
Self-custody, as Novikova explains, is akin to keeping one’s money tucked away under a mattress. It grants individuals complete control over their XRP or other cryptocurrency holdings, as they manage their own private keys – the master passwords that unlock access to their funds. This approach offers a sense of freedom from third-party intermediaries, appealing to those who value autonomy and self-reliance.
However, the empowerment of self-custody comes with a caveat: the burden of responsibility. Crypto holders who opt for this route must exercise utmost care in safeguarding their private keys. A lost or compromised key could lead to the irreversible loss of funds, a risk that cannot be understated in the realm of digital assets.
On the other hand, managed custody presents an alternative akin to entrusting one’s funds to a digital bank. In this scenario, third-party entities such as custodians and cryptocurrency exchanges assume the role of stewards, overseeing the management and safekeeping of an individual’s crypto assets.
The allure of managed custody lies in its convenience and the delegation of complexities. Crypto owners no longer need to wrestle with the intricacies of setting up, monitoring, and securing their wallets – a boon for those who are less technically inclined or simply prefer to outsource such responsibilities.
Moreover, managed custody offers an additional layer of security in the form of recovery options. Should an individual lose access to their private keys for any reason, managed custody providers can facilitate the retrieval of their assets. However, it’s important to note that this approach is not without its own risks, as poor management or malicious actions on the part of the custodian could still jeopardize the safety of the assets.
Ripple, recognizing the growing demand for institutional-grade custody solutions, launched its own crypto custody division in the fourth quarter of 2024. This move was part of the company’s diversification strategy, bolstered by the acquisitions of crypto custodian Metaco in 2023 and Standard Custody & Trust Company in early 2024. While current figures on the assets under Ripple’s custody are not publicly available, previous data from the company’s Digital Asset Custody division indicates that it managed over $652.125 million worth of crypto assets between April 2023 and March 2024, with the majority held in Bitcoin (BTC) at $326.062 million and Ethereum (ETH) at $163.031 million.
As the conversation around custody options continues to evolve, another narrative is unfolding in parallel – the bullish trajectory of XRP itself. XRP, the digital asset at the heart of the XRP Ledger, has captured the imagination of investors and traders alike, with some analysts forecasting a meteoric rise that could propel its price beyond the $50 mark in 2025.
XRP, designed for quick and low-cost transactions, has garnered a reputation for its speed, efficiency, and scalability. Unlike some other cryptocurrencies that can be sluggish or expensive to use, XRP offers near-instantaneous and affordable transactions, making it an attractive option for individuals and businesses seeking to move money across borders seamlessly.
The market trends have shown a growing interest in cryptocurrencies that solve real-world problems, and XRP fits squarely into this mold. Its technology aims to streamline global payments, making them more accessible and cost-effective – a proposition that holds immense appeal in an increasingly interconnected world.
While the cryptocurrency market is inherently unpredictable, XRP’s focus on practical use cases and its ability to address existing inefficiencies in traditional finance has positioned it as a potential powerhouse in the current cycle.
Adding fuel to the bullish narrative surrounding XRP is the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC had previously claimed that XRP was sold as an unregistered security, casting a shadow of uncertainty over its regulatory status.
However, recent developments suggest that the tides may be turning in Ripple’s favour. With the incoming pro-crypto administration led by former President Donald Trump, the appointment of Paul Atkins as the new SEC chair has ignited hopes of a resolution to this long-standing legal quagmire.
Atkins, a vocal advocate for cryptocurrency innovation, is expected to bring a more favourable stance towards digital assets, potentially leading to the dismissal of the SEC’s case against Ripple. This potential turning point could unlock pent-up demand for XRP, unleashing a torrent of investment and driving its price to unprecedented heights.
Brad Garlinghouse, the CEO of Ripple, has expressed optimism about Atkins’ appointment, stating on X (formerly Twitter): “An outstanding choice – Paul Atkins at the helm of the SEC will bring common sense back to the agency. Along with Hester Peirce and Mark Uyeda, it’s time to swiftly and definitively end the prohibition era on crypto, restoring freedom of choice, economic growth, and innovation.”
The potential implications of this regulatory shift extend far beyond Ripple itself. With the promise of greater clarity and a more supportive environment for cryptocurrencies, institutional investors who have largely remained on the sidelines may finally feel emboldened to enter the market. This influx of capital could further fuel the growth of digital assets like XRP, potentially propelling them to unprecedented heights.
Rumours are already swirling about the interest of financial giants like BlackRock, the world’s largest asset manager with $12 trillion under management, in adding XRP to their portfolios. Even a small allocation from such a behemoth could trigger a massive rally in XRP’s price.
Moreover, the potential approval of XRP-focused exchange-traded funds (ETFs) could serve as a catalyst for mainstream adoption. At least four firms, including WisdomTree and Bitwise, have already filed applications for such products, following in the footsteps of the successful launch of Bitcoin ETFs, which demonstrated the transformative power of these investment vehicles.
In this new era of decentralised finance, the combination of XRP’s speed, low costs, and scalability could propel it to astronomical levels, with some analysts predicting a price target of $50 or even higher in 2025. While such predictions should be taken with a grain of salt, given the inherent volatility of the cryptocurrency market, the potential for a significant price surge cannot be ignored.
