Ripple says banks need custody controls ahead of Qivalis euro stablecoin

Key points

• Ripple published its assessment on 9 Nov, covering custody, governance, settlement and redemption for banks.
• BBVA uses Ripple Custody for Bitcoin and ether services in Spain, with operations also in Switzerland and Turkey.
• Qivalis, based in Amsterdam, has 37 member banks across 15 countries and DNB authorisation effective 13 Oct.

Ripple has highlighted its custody services as banks prepare for the Qivalis euro stablecoin, setting out what lenders need to safeguard client holdings and connect digital assets to existing systems. The company's assessment, published on 9 Nov, placed those functions within services spanning issuance, custody, governance, settlement and redemption, according to Bitcoin.com News.

Ripple cited two existing clients in the 37-bank consortium. DZ BANK, the central institution of a German cooperative banking group, chose Metaco's custody platform, which Ripple acquired in 2023, to handle crypto securities under Germany's Electronic Securities Act.

Cassie Craddock, Ripple's vice president and managing director, said the establishment of the EU's Markets in Crypto-Assets regulation across Europe had emboldened banks to launch digital asset offerings their customers want. Ripple said individual banks could keep custody or delegate it to another provider, with software-defined policies governing access, approvals and jurisdictional controls.

Qivalis plans a full-reserve model with each token backed 1:1, and said on 14 Oct that issuance was expected within the following months, subject to MiCA requirements and publication of its white paper.

What to watch: Qivalis plans issuance within the months following its 14 Oct announcement, subject to MiCA requirements and publication of its white paper.

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