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Institutional blockchain provider Ripple has signed a partnership with South Africa's Absa Bank to offer digital asset custody services, marking a significant milestone in its regional expansion. The collaboration makes Absa the first major custody partner of Ripple in Africa, according to the announcement.

Absa will use Ripple's enterprise-grade infrastructure to provide secure custody solutions for tokenized assets and cryptocurrencies. The bank, which oversees more than $119 billion in assets, aims to provide enhanced customer access to compliant digital asset services while meeting regulatory requirements.

%Ripple stated that the move was aimed at addressing the growing institutional demand for secure and transparent custody solutions in emerging markets. Reece Merrick, Ripple's Managing Director in the Middle East and Africa, said the partnership highlights Ripple's commitment to contributing to Africa's digital transformation in the financial sector.

Reece noted, "Africa is experiencing a major shift in how value is stored and exchanged, and our partnership with Absa underscores Ripple's commitment to unlocking the potential of digital assets on the continent."

Ripple's partnership with Absa has been added to Ripple's list of expanding partnerships with global financial institutions to integrate blockchain infrastructure. Earlier this year, Ripple partnered with Chipper Cash to fuel cross-border payments and launched its RLUSD stablecoin (CRYPTO: $RLUSD ) throughout the continent through partnerships with VALR and Yellow Card.

Ripple's Institutional Custody Push

Ripple's emphasis on custody has increased since it registered a trademark for its institutional custody business in March. The service, which debuted last year following the acquisition of Standard Custody, is designed for financial institutions and fintechs seeking to manage tokenized assets.

The company has since expanded its partnerships worldwide. It recently partnered with Bahrain Fintech Bay to introduce its custody and stablecoin solutions in the Middle East and signed a deal to offer similar services to BBVA in Spain and BDAAS in South Korea. In 2023, Ripple also introduced its custody platform in collaboration with HSBC for managing tokenized securities.

With the addition of Ripple's technology, Absa is joining a growing number of banks worldwide that are utilizing blockchain technology to diversify their financial services, enhance compliance, and facilitate future tokenized products.

Crypto Adoption Accelerates Across Africa

Africa's crypto market is still rapidly growing and is supported by growing demand for digital payments and tokenized financial products. Chainalysis data indicates that Sub-Saharan Africa processed more than $205 billion in on-chain value from July 2024 to June 2025, a 52% increase year-over-year. South Africa and Nigeria are the leaders in regulatory developments, creating frameworks for trading, taxation, and custody.

Institutional confidence has fuelled partnerships between fintechs, payment networks, and exchanges. According to the San Francisco-based technology company's 2025 New Value Report, 64% of financial leaders in the Middle East and Africa believe that faster payments and settlement times are the main motivation for the continent's adoption of blockchain-based currencies.

Recent developments, such as the collaboration between Scan to Pay and MoneyBadger, enable crypto payments at more than 650,000 merchants in South Africa. The integration links platforms such as Binance, Luno, and VALR to physical retail outlets, enhancing the real-world applications of cryptocurrency.