Cryptocurrency trading platform Uphold has entered the XRP custody scene with the launch of “Uphold Vault.” Uphold announced this on its official X page, confirming that the new custody service is a self-assisted custody solution that will guarantee bank-grade protection for users round the clock.
The Uphold Vault product is designed as a one-stop shop to meet the needs of its users. The exchange said Uphold Vault users can access the benefits of self-custody and access to instant trading. Among the features offered by the new custody service is the assisted key replacement feature for an added layer of security.
Per its design, Uphold Vault comes with three keys, two of which are made available to the account owner, while the platform safeguards the third one. Irrespective of this structure, Uphold never controls anything that relates to the user’s account to model the core ethos of a custody solutions provider.
The concept of not-your-keys, not-your-crypto became prominent with the collapse of the FTX Derivatives Exchange last year. The advocacy for self-custodial solutions grew, and centralized platforms have been making a sharp pivot to disrupt this space. Binance also recently launched its Web3 wallet for the same reason as Uphold.
Tough competition for Xumm
The launch of Uphold Vault will provide tough competition to the XRP ecosystem’s dominant self-custodial wallet, Xumm.
While Uphold Vault is only supportive of XRP at this time and Xumm has a wider array of support, the link of the former to the centralized platform positions it in a good spot to outwit the latter in the long run.
Uphold sits at a critical point in the XRP ecosystem, offering rewards to holders of the currency to drive engagement, liquidity and protocol usage as a whole. With plans to add more digital currencies over time, the Uphold Vault is billed to become a dominant noncustodial force in the XRP and Web3.0 outfit.
