Ripple, the San Francisco-based blockchain financial solutions company, has announced the acquisition of Standard Custody & Trust Company, a regulated custodian for digital assets. The acquisition, first announced in February 2024, has received all necessary regulatory approvals.
This strategic move strengthens Ripple’s position in the digital asset landscape. It’s expected to bolster its existing product offerings and pave the way for new initiatives, such as the underway stablecoin.
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Standard Custody’s regulatory compliance, including its licensing by the New York Department of Financial Services (NYDFS), aligns with Ripple’s commitment to improve established frameworks.
Ripple’s Expanding Role in Finance
The closing of the Standard Custody acquisition marks a significant step forward for Ripple. This acquisition adds an NYDFS-regulated limited-purpose trust company to its portfolio, further strengthening its enterprise blockchain and digital asset infrastructure.
It allows Ripple to better serve institutional customers by providing secure and compliant solutions for tokenization, storage, movement, and exchange of values.
The acquisition came shortly after Ripple announced its plans to launch a USD-backed stablecoin. According to Ripple’s announcement, Jack McDonald, CEO of Standard Custody, will assume the additional role of Senior Vice President of Stablecoins at Ripple.
The company believes Mr. McDonald’s extensive experience in investment banking, asset management, and digital assets positions him well to lead the development and launch of Ripple’s stablecoin. He will also remain CEO of Standard Custody.
There is a clear demand for stablecoins that offer trust, stability, and utility. This is the driving force behind Ripple’s stablecoin, and the company could turn the financial world around with XRP, its stablecoin, and its unrivaled processing technology.
In 2023, Ripple acquired Metaco, a leading institutional digital asset custody solution. The Standard Custody acquisition has expanded the company’s reach. According to Ripple’s announcement, these acquisitions highlight the growing importance of digital assets, stablecoins, central bank digital currencies (CBDCs), and tokenized real-world assets (RWAs).
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Ripple Prioritizes Regulatory Compliance
While spreading its wings, Ripple is also careful to operate within the limits of the law. Ripple’s focus on regulatory compliance extends beyond this acquisition.
According to the announcement, the company holds nearly 40 money transmitter licenses throughout the U.S., a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland.
By securing the appropriate licenses and developing compliant solutions, Ripple is increasing the chances for wider institutional adoption of blockchain technology across various applications, including cross-border payments and digital asset custody.
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