Earlier this year, Ripple made public its intention to acquire Standard Custody & Trust Company, a regulated custodian for digital assets. Following the necessary regulatory approvals, the acquisition has now been finalized. This strategic move not only enhances Ripple’s current offerings but also creates opportunities for new ventures, including stablecoins, all while maintaining a strong focus on regulatory compliance. Ripple’s approach highlights its collaboration with global regulators to integrate blockchain technology into the global financial infrastructure.
In a recent announcement, Ripple confirmed the completion of its acquisition of @StandardCustody. This acquisition is set to further empower Ripple in its mission to establish the Internet of Value.
By welcoming a regulated limited purpose trust company under its wing, Ripple has significantly expanded its regulatory reach. With nearly 40 money transmitter licenses across the U.S., a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider (VASP) registration from the Central Bank of Ireland, Ripple is now well-equipped to offer robust enterprise infrastructure solutions driven by blockchain and digital asset technology. These solutions will enable enhanced tokenization, storage, transfer, and exchange of value for institutional clients.
In the aftermath of this acquisition, Ripple has revealed its plans to introduce a USD-backed stablecoin. This initiative seeks to bridge the gap between blockchain technology and traditional finance by meeting the growing demand for stablecoins that provide trustworthiness, stability, and practicality. Leveraging its extensive experience in developing real-world financial solutions, Ripple aims to cater to this expanding market. The new stablecoin, in conjunction with XRP, will play a key role in Ripple’s payment solutions, catering to enterprise clients on a global scale. Issued on the XRP Ledger, Ripple’s stablecoin is poised to enhance liquidity on XRPL’s native DEX and support a range of financial use cases for developers, users, and businesses.
Ripple is excited to announce the appointment of Jack McDonald as the new Senior Vice President of Stablecoins, while he continues to serve as the CEO of Standard Custody. With over three decades of experience in investment banking, asset management, financial services, and digital assets, Jack McDonald brings a wealth of expertise to lead Ripple’s stablecoin team. His leadership will be instrumental in launching Ripple’s stablecoin, fostering growth, and driving innovation in the digital asset realm.
Standard Custody marks Ripple’s second significant acquisition within a year, following the acquisition of Metaco in May 2023. Metaco is recognized for its institutional digital asset custody solutions. These strategic acquisitions underscore the growing significance of digital assets, including stablecoins, CBDCs, and tokenized real-world assets such as stocks, bonds, commodities, and real estate. Ripple’s commitment to providing trust, utility, and liquidity aims to unlock access to these new asset classes and the broader token economy, accelerating market expansion.
Remaining steadfast in its commitment to regulatory compliance and customer service excellence, Ripple continues to make strategic acquisitions to reinforce its leadership in the enterprise blockchain sector. By obtaining the necessary licenses and adhering to regulatory standards, Ripple is dedicated to enhancing cross-border payments, digital asset custody, and more. This approach is fundamental in driving institutional adoption of blockchain technology and shaping the future of digital finance.