In a move that underscores the growing embrace of blockchain technology by traditional banks, Absa has signed a deal with payments infrastructure provider Ripple to provide digital asset custody services to its customers in SA.
Through the partnership, “Absa will leverage Ripple’s institutional-grade digital asset custody technology to deliver scalable and secure storage for tokenised assets, including cryptocurrencies.”
Absa becomes Ripple’s first major custody partner in Africa through this collaboration.
Ripple, famous for its association with the XRP blockchain and cryptocurrency, provides banks and financial institutions with a secure and compliant platform for managing digital assets. Established in 2004, it specialises in the storage and manage a wide range of assets, including cryptocurrencies, stablecoins, and tokenised real-world assets.
In essence, the core business is to use the XRP Ledger to move money between banks.
According to Absa: “The partnership responds to the growing demand for secure, compliant digital asset infrastructure across emerging markets. Ripple’s expanding global custody network now includes clients across Europe, the Middle East, Asia-Pacific, Latin America, and Africa, supporting financial institutions as they embrace the opportunities presented by digital asset technology.”
“We recognise the importance of providing our customers with secure, compliant, and robust custody solutions for their digital assets,” said Robyn Lawson, head of digital product: custody at Absa Corporate and Investment Banking.
“Ripple’s custody solution allows us to leverage proven and trusted technology that meets the highest security and operational standards. Together, we can deliver the next generation of financial infrastructure to our customers.”
“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,” said Reece Merrick, Ripple's MD for Middle East and Africa.
Blockchain, the technology that powers cryptocurrencies such as bitcoin, had until recently been regarded as fringe and associated with finance scams. But in recent years, the market has seen more mainstream adoption, driven in part by large fund managers such as BlackRock.
Sensing the shift, central banks and finance authorities are helping to increase credibility for fintech operators.
In July, local company Kotani Pay became the first blockchain fintech to receive a crypto asset service provider licence from SA’s Financial Sector Conduct Authority.
As such, institutional interest in blockchain-based solutions is rising.
“Ripple’s infrastructure enables financial institutions like Absa to confidently explore new digital asset offerings while meeting strict security, operational, and regulatory requirements,” said the bank.
The partnership with Absa extends Ripple’s existing operations on the continent.
Earlier in the year, Ripple announced it is supporting Africa-based payments provider Chipper Cash with its crypto-enabled payments technology, as well as the arrival of its US dollar-backed stablecoin RLUSD in Africa.
Elsewhere in the market, crypto trading platforms like Binance and Luno have continued to push their strategy to gain more users by allowing people in SA to buy and sell goods using cryptocurrency.
Ripple has seen increasing demand for its payments solution across Africa from crypto firms and traditional financial institutions.
According to its 2025 New Value Report, 64% of Middle East and Africa finance leaders “see faster payments and settlement times as the biggest impetus for incorporating blockchain-based currencies into their cross-border payments flows.”