Ripple May Expand Into South Africa With Absa to Offer Institutional RLUSD and Crypto Custody

• Ripple Absa partnership introduces institutional custody in Africa

• Absa will use Ripple’s enterprise custody to manage crypto and tokenized financial products in South Africa.

• Chainalysis data: Sub‑Saharan on‑chain value topped $205 billion (July 2024–June 2025), up 52% year‑over‑year.

Ripple Absa partnership expands institutional digital asset custody in South Africa — read how banks and businesses can benefit; COINOTAG explains key impacts and next steps.

What is the Ripple Absa partnership?

Ripple Absa partnership is a collaboration that makes Absa Bank the first major digital asset custodian for Ripple in Africa, integrating Ripple’s enterprise‑grade custody platform to store tokenized assets and cryptocurrencies for Absa’s customers in South Africa. The deal aims to combine bank regulatory controls with institutional custody standards to scale compliant digital asset services.

How will Ripple’s custody solution operate within Absa’s infrastructure?

Absa will integrate Ripple’s custody platform to secure keys and tokenized assets while adhering to the bank’s operational and compliance frameworks. The system supports multi‑asset storage, audit trails, and institutional controls. Ripple emphasises audited security, and Absa has stated the integration will follow local regulatory guidance in South Africa, aligning banking safeguards with digital custody standards.

Detailed reporting and context

Stablecoin issuer and cross‑border payments platform Ripple announced on October 15, 2025 that it is expanding into Africa by partnering with Absa Bank, one of the continent’s largest financial institutions. Under the agreement, Absa will integrate Ripple’s institutional‑grade digital asset custody technology to store tokenized assets, including cryptocurrencies, for customers in South Africa.

In Ripple’s statement, the company said Absa will use its enterprise custody platform to secure and scale storage for several digital assets. The platform is designed to enable banks and regulated institutions to manage cryptos and tokenized financial products in compliance with operational standards and regulatory expectations.

Why this matters for African markets

The partnership is significant because it pairs a major regional bank with a custody provider that has pursued global licences and institutional adoption. Absa serves more than 12 million customers across over ten African countries; bringing custody in‑house via a trusted vendor reduces operational friction for clients seeking regulated storage and may accelerate institutional product launch timelines for tokenized securities and stablecoins.

Reece Merrick, Managing Director for the Middle East and Africa at Ripple, said the move underscores Ripple’s commitment to unlocking digital asset potential on the continent and supporting bank partners with secure custody infrastructure. Robyn Lawson, Head of Digital Product, Custody at Absa Corporate and Investment Banking, described the integration as a demonstration of Absa’s commitment to innovation and client trust, noting the platform meets high security and operational standards.

Market data and regulatory context

Industry reports support the commercial case for custody services. According to Chainalysis (July 2024–June 2025 data), Sub‑Saharan Africa received over $205 billion in on‑chain value, a 52% increase from the prior 12 months. Ripple’s 2025 New Value Report — published by the San Francisco‑based company — found 64% of financial leaders in the Middle East and Africa cite faster payments and settlement times as key drivers for blockchain adoption.

South Africa and Nigeria have advanced formal frameworks for trading, taxation, and custody, enabling banks and fintechs to launch regulated digital asset offerings. Recent retail integrations, such as QR payments deployments that enable crypto checkout experiences, illustrate growing consumer demand and the need for regulated backend custody and settlement infrastructure.

Frequently Asked Questions

Is Absa authorised to custody crypto assets in South Africa?

Absa’s custody offering will operate under South African regulatory requirements applicable to financial institutions. The bank has indicated the service will follow existing compliance frameworks. Formal regulatory approval and prudential supervision processes differ by jurisdiction and are managed by South African authorities and industry supervisors.

How can customers access Ripple custody services through Absa?

Clients of Absa Corporate and Investment Banking will be able to use the bank’s custody service for tokenized assets and approved crypto products. The onboarding process will follow standard KYC/AML procedures and institutional account setup. Customers should contact Absa for product availability, supported assets, and operational details.

Key Takeaways

• Institutional custody arrives in Africa: Absa becomes Ripple’s first major custodian in Africa, enabling regulated storage of crypto and tokenized assets.
• Market readiness: Chainalysis data and Ripple’s 2025 report show rising on‑chain volumes and executive interest in faster settlement, supporting demand for custody services.
• Next steps for customers: Institutions and corporates should evaluate custody needs, compliance integration, and operational onboarding with Absa to leverage tokenization and stablecoin use cases.

Conclusion

The Ripple Absa partnership represents a pragmatic step toward mainstreaming institutional digital asset custody in South Africa by combining bank governance with enterprise custody capabilities. As on‑chain activity in Sub‑Saharan Africa grows and regulatory frameworks mature, bank-led custody services are likely to play a central role in enabling tokenized products and compliant stablecoin use. COINOTAG will monitor developments and publish updates as Absa rolls out services and regulators provide further guidance. Published: October 15, 2025. Updated: October 15, 2025. Author: COINOTAG.