Ripple Custody has introduced support for Hedera Hashgraph’s HBAR tokens, validated for the very first time with a scholarly academic research study. The study, presented in the Future Internet journal, demonstrates Ripple’s capability to manage Hedera-based assets on a collective Multi-Party Computation (MPC) wallet platform.
According to the study, a wallet solution designed for regulated institutions handling assets such as XRP and HBAR on different blockchains is brought to the spotlight. With the implementation of shared custody, Ripple Custody reinforces its position for cross-chain asset management by allowing safe handling of Ethereum tokens, XRPL tokens, and Hedera tokens on a single platform.
In this design, a Threshold Signature Scheme (TSS) splits the key across the client, a custody provider, and a wealth manager so that there is no single point of failure risk. This allows the institutions to manage crypto holdings with safety while incorporating controls like transaction whitelists, withdrawal caps, and role-based authorizations for compliance with regulations.
Another important feature incorporated within the wallet is DeRec, which is a decentralized recovery protocol. The innovation eliminates the need for recollection or storing seed phrases. Rather, the recovery details are encrypted and distributed across helper nodes, a decentralized mechanism that protects from unauthorized use with a method for recovering credentials securely when necessary.
The research also makes a comparison table that explicitly states Hedera as being among the networks supported by Ripple Custody. The confirmation broadens Ripple’s custody solution past Ethereum and XRPL, reaching into Hedera’s blockchain network. It makes it possible for asset managers to manage tokenized assets on various chains within a single custody setup.
The research was produced by scholars associated with the UCL Centre for Blockchain Technologies and the Exponential Science Foundation. Both organizations have close ties with Ripple and Hedera governance organizations, which indicates that shared-custodial designs of wallets harmonize both on an academic and a practical level with present institutional blockchain needs.
Ripple Custody’s new support for Hedera allows institutional investors to hold tokenized securities, digital bonds, and other blockchain-based assets on a single custody solution. This solution allows for compliance and diversification of the portfolio, while ensuring hedging fund, private bank, and wealth manager clients’ operations’ flexibility remains intact when operating within regulated markets.
The wallet also has built-in tools for compliance with standards existing in places like the U.S. and EU territories. These functionalities have transaction caps, whitelisting, and role-based authorization to simplify financial regulation compliance. By ensuring smart contract compatibility, automated compliance within institutional structures is facilitated as well.
Their monetization plan is based on listing charges, assets under management charges, transactional charges, and performance charges. It is a financial arrangement that accommodates services like staking, lending, and liquidity provisioning without the delegation of control to intermediaries like exchanges or custodians.
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