In a move signaling its dedication to regulatory compliance and expanding its offerings, Ripple, a leading blockchain company, has announced its agreement to acquire Standard Custody & Trust Company. This acquisition marks Ripple’s strategic pivot towards serving institutional clients with a broader range of blockchain-based financial products beyond its renowned payments network.
Standard Custody & Trust Company is renowned as an enterprise-grade regulated platform specializing in digital assets. Through this acquisition, Ripple aims to harness Standard Custody’s regulatory licenses, including its limited purpose trust charter and money transmitter licenses. This addition bolsters Ripple’s already impressive portfolio of regulatory licenses, which includes a New York BitLicense, numerous money transmitter licenses across the United States, a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland.
Monica Long, President of Ripple, highlighted the strategic importance of the acquisition, emphasizing the shared vision of enabling enterprises to leverage blockchain technology across various financial applications. She stated, “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.”
This acquisition follows Ripple’s $250 million acquisition of custody provider Metaco last year. Additionally, Ripple has been actively forming custody partnerships with prominent banks like HSBC, BBVA, and Zodia Custody. Furthermore, Ripple has been expanding its Ripple Payments offering to new territories, including significant strides in Africa.
However, it’s worth noting that the closing of the Standard Custody acquisition is contingent upon regulatory approval, underscoring Ripple’s commitment to compliance and adherence to regulatory standards. While the financial terms of the acquisition were not disclosed, the strategic implications of this move are substantial for Ripple’s future growth trajectory and its ability to cater to institutional clients in the rapidly evolving crypto landscape.
As Ripple continues to fortify its position as a leading provider of blockchain solutions, this acquisition underscores its proactive approach to navigating regulatory complexities while expanding its suite of financial products and services tailored to institutional demands.
