South African lender Absa activated Absa Digital Asset Custody on September 21, deploying Ripple's custody technology within the corporate and investment banking arm of one of Africa's largest financial institutions. The partnership was first announced in October 2025, marking Ripple's entry into the African custody market.
Absa described the offering as "a digital first for Africa, built to institutional standards," positioning it as a secure, regulated environment for safeguarding digital assets and managing private keys to institutional-grade security levels. Reece Merrick, Ripple's managing director for the Middle East and Africa, stated that "by leveraging Ripple's custody technology, Absa is setting a new benchmark for secure, compliant, and bank-grade digital asset management on the continent."
Absa has not yet disclosed which assets it will custody, its fee structure, or details of initial clients. The service currently directs institutional buyers to a dedicated sales desk.
Regulatory Environment Strengthens in South Africa
The launch follows months of regulatory development in South Africa. The Financial Sector Conduct Authority (FSCA) has approved 310 of 533 crypto asset service provider applications as of March 31, 2026. In May and June 2026, South African regulators issued guidance on crypto payments and the High Court ruled that bitcoin qualifies as money under exchange-control rules.
Market demand supports the expansion. A Discovery Bank and Visa report found approximately 7.8 million South Africans, roughly 13 percent of the population, invest in crypto, mostly through local exchanges rather than banks—a gap Absa's custody service aims to address.
Expanding Ripple Custody Operations
Absa joins a growing list of financial institutions utilizing Ripple's custody infrastructure. In February 2026, Ripple added Securosys hardware security modules and Figment staking services to Ripple Custody. Figment serves more than 1,000 institutional clients. Ripple reports holding 60 or more regulatory licenses and registrations across its operating regions.
