Leading enterprise blockchain and crypto solutions company, Ripple agreed to acquire Standard Custody & Trust Company to secure a New York trust charter in its ongoing expansion of US regulatory licensing.
Ripple, the company that operates a payment network and supports the $XRP cryptocurrency, announced its intention to acquire Standard Custody & Trust Company.
Today, we’re excited to announce that Ripple has signed a deal to acquire @StandardCustody, strengthening our product offerings and adding to our growing portfolio of regulatory licenses around the world. Learn more about our latest acquisition: https://t.co/JJp51mEabL
— Ripple (@Ripple) February 13, 2024
Growing Portfolio of Regulatory Licenses
Ripple will acquire Standard Custody & Trust Company, a US digital asset custody provider, offering custody and escrow services under a charter granted by the New York State Department of Financial Services. Standard Custody is a qualified custodian under federal legislation.
According to a press release announcing the acquisition, the deal was struck to secure Ripple with a New York trust charter amid its ongoing expansion of its US regulatory licensing.
“This move further underscores Ripple’s commitment to regulatory compliance and enables the company to strengthen its existing product offerings, as well as explore new, complementary products,” Ripple said.
Ripple and its subsidiaries hold a New York BitLicense, almost 40 money transmitter licenses across the US, an MPI license from the Monetary Authority of Singapore, and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland. With the acquisition, Standard Custody’s limited-purpose trust charter and money transmitter licenses will add to Ripple’s growing portfolio of regulatory permits.
Ripple President, Monica Long, said:
“Ripple and Standard Custody are dedicated to enabling enterprises to reap the benefits of blockchain across a host of financial use cases, building institutional-grade solutions to tokenize, store, move, and exchange value. By expanding our licenses portfolio and making smart acquisitions, Ripple is well-positioned to take advantage of the current market opportunities and further strengthen our crypto infrastructure solutions. We will continue to leverage our strong financial standing to expand our product offerings, support new initiatives on the product roadmap and serve a broader segment of customers.”
Ripple Acquires Its Second Custody Provider
In 2023, Ripple acquired its first cryptocurrency custody firm, Metaco. The $250 million deal sees Ripple take sole responsibility for world-renowned Metaco while allowing its current CEO enough room to manage operations independently.
According to the press release, Ripple recently announced its custody partnerships with top-tier banks such as HSBC, BBVA, and Zodia Custody.
Ripple also debuted an updated crypto-enabled cross-border payment solution, Ripple Payments. Formerly known as RippleNet, Ripple Payments offers businesses the “enterprise-grade infrastructure” needed to leverage blockchain for “ faster, cheaper, and more efficient cross-border payments” without companies needing to be experts in the field. Per Ripple’s press release, by investing in its core business in Payments and Custody, Ripple supports “live commercial custody offerings in 20 regulatory jurisdictions and payment into 70 countries around the world.”
Standard Custody CEO Jack McDonald commented on the acquisition:
“Standard Custody provides financial institutions with the confidence and platform to safeguard their digital assets. Ripple continues to lead the industry with its deep crypto expertise, relationships with financial institutions and strong product offerings, across both payments and custody. Together with Ripple, we will further innovate and extend our leadership position in providing crypto infrastructure.”
$XRP Rallies Amid Wider Market Increases
Ripple’s native cryptocurrency, $XRP, traded upward over the past seven days, with its price increasing by 4.21%, according to data from CoinMarketCap. $XRP and the entire alt-market are soaring on the back of Bitcoin (BTC), breaking through $50,000 for the first time since 2021. At the time of writing, $XRP traded hands at $0.52 and $BTC at $49,557.28 – a slight drop from the $50K mark.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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