As the projected value of $16 trillion in the tokenized real-world asset economy attracts many investors, Akshay Wattal, head of information security at Ripple Labs, highlighted the key ingredients for success. in post Shared by Ripple on X, Wataru said that given the stakes, reliable security must be the foundation.
Powerful Ripple compliance architecture
According to Wattal, effectively storing digital assets requires “time-tested cryptography” and strong governance systems. He argues that simply having a cryptocurrency wallet is not enough to participate in tokenization. The institutions involved must provide bank-level security and comply with regulatory standards.
ripple They argue that they already offer these capabilities and are well-positioned to take advantage of the future of the tokenized economy. The organization highlighted several specific features, including hardware security modules (HSMs) and FIPS-certified hardware.
To capture the value of the predicted $16 trillion tokenized economy, institutions need more than just storage. They need resilience.
At Ripple, we provide a security environment that reflects the rigor of the banks we serve. We offer a combination of HSM and FIPS certified hardware… pic.twitter.com/qiOpSueP1h
— Ripple (@Ripple) December 2, 2025
In particular, an HSM is a physical device used by major world banks to protect their cryptographic keys.
This is understandable considering the number of malicious attacks attempted every day in the cryptocurrency space by hackers looking to steal unprotected assets.
FIPS certified hardware is a government-grade security standard. Ripple executives hinted that it meets regulatory standards required of financial institutions in global markets. Therefore, all operations related to tokenized assets can be handled seamlessly.
Essentially, the company’s security architecture meets the highest industry standards to help protect your assets. Closely related to security is global compliance. Ripple said it complies with SOC 2 Type II and ISO 27001 standards.
These are rigorous audits that institutions undergo to prove that their security controls are working over time. It also ensures that institutions can effectively manage user information security and prevent data breaches.
Global licensing strengthens institutional trust and wins
Ripple’s claims are supported by historical precedent from other projects like the XRP Ledger.
In early November, Ripple’s chief technology officer David Schwartz boldly stated: No one can steal from XRPL. This confirms the level of trust the organization has built over the years.
Meanwhile, in the broader financial sector, Ripple has recently Key licenses in Singapore.
The Monetary Authority of Singapore has granted Ripple a license that will allow it to be adopted by more financial institutions in the region. This license could help accelerate institutional adoption of Ripple in the broader financial sector.
