Banks don’t currently custody XRP for retail clients, and that’s not a guess. I’ve had these conversations directly with Fidelity, Schwab, JPMorgan, and Bank of America. None of them have FBO accounts set up for this. None of them have the infrastructure in place. If you’re waiting on a major bank to hold your digital assets the way they hold your brokerage account, that capability doesn’t exist yet.
Part of our guide: Digital Asset Custody.
Why the gap exists
It’s not that custody for digital assets is impossible, it’s that the demand hasn’t forced their hand yet. Retail investors hold a relatively small share of XRP’s total supply, so from a big bank’s perspective, there isn’t enough pressure yet to justify building the infrastructure. If retail demand grows, banks will likely get there eventually. Based on how long this kind of integration typically takes, that’s probably somewhere in the 6 to 18 month range once they commit, and longer if they get there by acquiring an existing exchange rather than building in-house, since tying in that infrastructure and standing up the reporting and compliance work takes real time.
What we built in the meantime
That gap is why we built institutional-grade custody at Digital Wealth Partners: FBO segregated accounts that are bankruptcy remote, with crime insurance through Lloyd’s of London covering up to $100 million. It took roughly two years to put that infrastructure together properly, and it exists specifically because the option didn’t exist anywhere else for XRP holders who wanted real institutional custody rather than a workaround.
The takeaway
If you’re holding a meaningful digital asset position and assuming your existing bank or brokerage can custody it properly, check that assumption before you need it to be true. As of now, most of them can’t. Plan around the infrastructure that actually exists today, not the infrastructure you expect to show up eventually.
Educational only, not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
