There are a couple of approaches you can use based on your custom scenario. I have prepared an example for you that defines a CellTemplate and uses a Border element, where its Background property is bound to this particular property that holds the hexadecimal representation of the color. In addition to this I believe that it would be helpful for you Creating Custom Editor with RadGridView.
Please see the attached project and if you need any further assistance let me know.
Kind regards,
Vanya Pavlova
the Telerik team
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