Ripple acquires NYDFS-regulated custodian Standard Custody Ripple acquires NYDFS-regulated custodian Standard Custody
Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.
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Updated: Jun. 11, 2024 at 3:11 pm UTC
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According to a June 11 statement, Ripple has completed the acquisition of Standard Custody & Trust Company, a licensed digital asset custodian.
The firm initially revealed its intention to acquire the firm in February but finalized the deal earlier today after receiving the appropriate regulatory approval.
Secures NYDFS licensing
Ripple said the acquisition brings a New York Department of Financial Services (NYDFS)-regulated trust company into its portfolio, further bolstering the number of licenses it has received in several countries, such as the US and Singapore.
The move is set to enhance Ripple’s product offerings and support the launch of new initiatives, such as its planned stablecoin. It also bolsters the company’s enterprise infrastructure, improving services for institutional clients.
This acquisition is the firm’s second largest in the past year, following the acquisition of Metaco, another institutional crypto custody platform, in May last year. Ripple stated:
“Both moves underscore the growing breadth and importance of digital assets; from stablecoins and CBDCs to tokenized real-world assets (RWAs) like stocks, bonds, commodities, real estate and more.”
The company said it will continue leveraging its strong financial position to pursue further acquisitions and strengthen its leadership in the blockchain space.
Appoints Vice-president for stablecoins
Jack McDonald will continue as CEO of Standard Custody and also serve as its Senior Vice President of Stablecoins. In this role, McDonald would bring his “wealth of knowledge and expertise to help lead the stablecoin team and bring Ripple’s stablecoin to market,” the company said.
Ripple’s plan to launch a USD-backed stablecoin aligns with the growing demand for these kinds of digital assets in the market. It stated:
“There is huge demand for stablecoins that deliver trust, stability and utility, and Ripple will leverage its decade-plus of experience building real-world financial solutions for global institutions to address this growing market.”
The unnamed stablecoin will be launched on the XRP Ledger and Ethereum. However, it has already attracted major regulatory scrutiny from the US Securities and Exchange Commission (SEC), which described it as an unregistered crypto asset.
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The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Brad Garlinghouse stands at the forefront of financial technology as the CEO of Ripple.