Ripple Finalizes Purchase of Standard Custody & Trust, Expanding Offerings and Compliance Standards
Ripple has successfully acquired Standard Custody & Trust Company, a regulated digital asset custodian, marking a significant milestone for the company. With all necessary regulatory approvals in place, Ripple is poised for growth and innovation.
The acquisition is part of Ripple’s strategy to enhance its existing product line and introduce new offerings, such as stablecoins, to reinforce its commitment to regulatory compliance. Collin Brown, a blockchain researcher, praised Ripple’s efforts to bridge the gap between blockchain technology and traditional finance.
Exciting news: #Ripple has completed its acquisition of Standard Custody and is gearing up to launch its stablecoin with Jack McDonald appointed as the new SVP of Stablecoins! Regulatory clearances in hand, Ripple is expanding its product range to include stablecoins, showcasing…
Ripple Strengthens Regulatory Compliance
By acquiring Standard Custody, Ripple adds a trust company under the jurisdiction of the New York Department of Financial Services to its already extensive license portfolio. This portfolio includes approximately forty money transmitter licenses in the US, 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.
These regulatory endorsements enable Ripple to better serve institutional clients in tokenization, storage, transfer, and value exchange with its blockchain and digital asset solutions.
Introduction of a USD-Backed Stablecoin
In addition to the acquisition, Ripple has announced plans to launch a stablecoin backed by USD. This initiative represents a crucial step in connecting blockchain technology with traditional banking systems. Stablecoins are increasingly popular due to their stability, reliability, and practicality.
Ripple aims to leverage its expertise to develop financial solutions for international organizations. The new stablecoin, to be issued on the XRP Ledger, will support various financial applications for developers, users, and enterprises, while enhancing liquidity for XRPL’s native decentralized exchange (DEX).
Jack McDonald, who will retain his CEO position at Standard Custody, has been appointed Senior Vice President of Stablecoins at Ripple to lead the stablecoin project. With over 30 years of experience in fintech, asset management, financial services, and investment banking, Jack McDonald brings a wealth of knowledge to the role.
Continued Growth and Expansion
The acquisition of Standard Custody follows Ripple’s previous purchase of Metaco, a leading provider of institutional digital asset custody systems, in May 2023. These acquisitions underscore the growing importance of digital assets, including tokenized real-world assets like equities, bonds, and commodities, as well as stablecoins and central bank digital currencies (CBDCs).
Ripple remains committed to strategic acquisitions to solidify its position as a pioneer in enterprise blockchain. Despite XRP’s current price of around $0.4838, showing a 2.66% decline in the last 24 hours and a 7.42% decrease over the past week, Ripple’s long-term vision and strong financial standing position it for continued success in the industry.