This is pretty huge! Will Cryptsy also be issuing asset balances within Ripple itself, so that they can used within the Ripple system?

Cryptsy can still get its cut via transfer fees on the Ripple balances it issues. However, letting markets develop for Cryptsy balances within Ripple has several advantages for the users, and makes Cryptsy's offering more attractive:

• Users could trade against any asset in Ripple, such as  vaulted gold or Euros. The imminent release of offer autobridging will make this even more useful.
• Users could instantly spend their Cryptsy altcoin balances wherever bitcoin is accepted, via Ripple's automated pathfinding and bitcoin bridge.
• Users could take advantage of any other outbound bridges to move their Cryptsy balances into their desired form. For example, Canadian and European users can send Ripple balances directly into their bank accounts via either Ripple Union's CAD direct deposit bridge or sepa.link's EUR (SEPA) bridge.

Cryptsy is already a huge cryptocurrency marketplace, but providing access to such features could help lure those people who are currently trading elsewhere.