Ripple Custody Version 1.43 was released on October 5th, and the related integrations were also launched accordingly. According to the official documentation of Ripple, institutions can now hold and transfer Canton Coin and CIP-56 tokens through the same set of hosting platform, policy engine, and audit tracking system; this system is also used for other supported digital assets.

The reason this development is noteworthy is that Canton and XRP Ledger have previously been positioned as infrastructure for institutional tokenization. Ripple's support for Canton indicates that the company is increasingly inclined to view custody as a business that is unrelated to blockchain, rather than limiting it to just the business of XRPL.

Ripple Custody directly connects to Canton

The integration of Ripple with Canton adopts the "built-in verifier" mode.

Institutions can operate their own Canton verifiers, or use verifiers provided by node operators; at the same time, Ripple Custody manages the signature keys within its HSM or KMS security infrastructure.

This release also includes a pre-approval transfer function, which allows accounts to receive assets without the need to sign each incoming transaction individually; at the same time, a two-step transfer mechanism has been added, allowing for transfers to be accepted, rejected, or withdrawn.

These functions are designed for institutional scenarios. In such scenarios, before the transfer of assets, the transaction may require multiple layers of authorization.

This also expands on the strategy behind the infrastructure of the Ripple Custody institution, whose uses are increasingly extending beyond the mere storage of XRP or other cryptocurrencies.

Supporting Canton does not imply integrating XRP.

For the holders of XRP, this distinction is very important.

Ripple Custody supporting Canton does not imply that Canton Network is currently using XRP, XRPL, or RLUSD; nor has Ripple announced any interoperability between Canton and XRP Ledger.

On the contrary, Ripple provides a custody technology for another blockchain-native asset.

This aligns with Ripple's recent broader strategy of expanding from custody to tokenization: the company is attempting to make arrangements in areas such as custody, issuance, compliance, and settlement, rather than relying on each institutional workflow to operate directly on XRPL.

Institutional tokenization is moving towards multi-chain platforms.

Canton is designed specifically for regulated financial markets, where transaction privacy is of great importance. In multi-party transactions, participants can obtain information related to themselves without having to disclose all their balances or transaction details to the entire network.

Meanwhile, XRPL continues to expand its institutional footprint. Reports indicate that a Brazilian market operator responsible for regulating approximately $4 trillion in registered assets has recently begun using XRP Ledger to mirror the records of regulated funds.