Ripple, the prominent blockchain payment network supporting XRP cryptocurrency, has strategically acquired Standard Custody & Trust Company, a U.S.-based digital asset custody provider. This acquisition not only strengthens Ripple’s foothold in the digital asset management space but also enhances its regulatory compliance capabilities, given Standard Custody’s qualifications under both New York State and federal regulations.
Standard Custody & Trust, known for its robust custody and escrow services, operates with a charter from the New York State Department of Financial Services. It is recognized as a qualified custodian, a status that Ripple anticipates will bolster its portfolio of regulatory licenses. This move aligns with Ripple’s vision to serve its clientele more comprehensively, aiming to be the go-to platform for enterprises seeking to tokenize, securely store, and efficiently transfer digital assets.
Ripple’s regulatory credentials include a New York BitLicense and an extensive array of money transmitter licenses across nearly 40 U.S. states. The addition of Standard Custody’s licenses is expected to further Ripple’s mission to streamline and secure digital transactions on a global scale.
The acquisition’s terms remain undisclosed, coming in the wake of significant corporate movements, including the resignation of Metaco CEO Adrien Trecanni and Ripple’s earlier acquisition of Metaco, a Swiss blockchain custody firm, for $250 million. These developments underscore Ripple’s aggressive expansion and consolidation strategy in the blockchain and digital asset sectors.
Standard Custody is a subsidiary of PolySign, a digital asset infrastructure company co-founded by Ripple’s own Arthur Britto, who also played a pivotal role in the creation of the XRP Ledger protocol. Britto’s involvement bridges Ripple’s foundational technology with PolySign’s infrastructure capabilities, promising a synergistic integration of services.
This acquisition occurs amidst Ripple’s ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC) over the status of XRP tokens. Despite these hurdles, Ripple continues to achieve significant regulatory milestones globally, including securing a major payment institution license from Singapore and virtual asset service provider registration in Ireland.
As Ripple awaits regulatory approval for this latest acquisition, the move is seen as a significant step towards solidifying its position as a leader in blockchain-based financial services, emphasizing security, compliance, and innovation in the rapidly evolving digital asset landscape.
