TL;DR
- Ripple plans to acquire a company with a New York trust charter. The move will expand its services in the U.S. beyond what it’s well known for.
- The Standard Custody acquisition still awaits approval by the New York regulator. This deal will add crypto custody and settlement business to Ripple’s portfolio if approved.
Latest Acquisition to Expand Ripple’s U.S. Regulatory Licensing
Ripple, a San Francisco-based crypto outlet, is gearing up to expand its payment network circle.
It is planning to acquire the New York-based digital platforms Standard Custody and Trust Company.
The move will foster its broader plan of expanding its operation in the United States. Notably, this acquisition follows Ripple’s recent purchase of another custody business.
The new development highlights how Ripple is focused on regulatory compliance and the diversification of its service offerings.
The acquisition still requires regulatory approval. However, the crypto outlet anticipates becoming the sole shareholder once the deal is done.
With the acquisition, Ripple can leverage Standard Custody’s limited-purpose trust charter and money transmitter licenses.
Standard Custody offers several services, including digital asset custody, settlement for institutional investors, and escrow.
It secured approval for a New York trust license in May 2021, making it a prominent player in the crypto industry. Ripple’s purchase aims to leverage these capabilities to expand its service offerings.
Acquisition to Unlock New Opportunities
The recent Standard Custody & Trust purchase will open up opportunities for Ripple to provide a broader range of in-house services.
They include custody solutions and serve financial firms interested in asset tokenization. Far from that, Ripple will also tap into the potential of blockchain technology for diverse financial products.
With Standard Custody, we’ll be able to improve existing product offerings for our customers and explore new products and use cases, all in a compliant way.
Brad Garlinghouse, Ripple’s CEO, stated in an X post.
Despite its overseas focus and ongoing high-profile legal battles with the U.S. SEC, Ripple is positive about expanding its capabilities in the U.S.
It’s pushing beyond what it’s known for—a payment network and getting into other financial products from which its clients can benefit.
Moreover, the acquisition provides a full end-to-end solution for financial firms exploring decentralized financial services.
What Happens Next?
With the news, Ripple has been grabbing considerable attention in crypto, especially the XRP community.
They are anticipating how the potential acquisition can help the XRP coin break out from its shell of stagnancy. Ripple’s XRP is trading at $0.5253, roughly a 1% downtrend in the last 24 hours.
Market watchers believe that an XRP explosion may be in the cards with newfound optimism in the U.S. market.
However, it’s unclear whether XRP price will uptrend in the long run since it depends on adoption.
In any case, Ripple is getting ready for this surge in adoption and XRP usage.
Will Ripple’s new acquisition get approval from the New York Department of Financial Services?
Shawn Munir
Shawn Munir is the CEO of Coinweb.com and spearheads all the collaborative partnerships for the platform. He bought his first Bitcoin in 2017 and never looked back. He is also an investor in 200+ Web3 startups and is considered an expert in the field. Before building Coinweb with his co-founders, he co-founded Presail, a management platform designed for companies and investors to manage their investments in Web 3. In addition to his entrepreneurial endeavors, Shawn serves on the United Nations...
