In a recent development, blockchain payment company Ripple has announced the acquisition of New York-based crypto trust company Standard Custody & Trust Co. This move aims to enhance Ripple’s regulatory compliance capabilities and broaden its product offerings.
Ripple’s Regulatory Compliance Reinforced?
According to the press release issued on February 13, the acquisition aligns with the crypto company’s commitment to regulatory compliance. It will enable the company to strengthen its existing offerings while exploring new and complementary products.
The acquisition of Standard Custody contributes to Ripple’s growing portfolio of regulatory licenses, which now includes a New York BitLicense, nearly 40 money transmitter licenses across the United States, a Major Payment Institution License (MPI) from the Monetary Authority of Singapore (MAS), and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland.
Ripple President Monica Long emphasized the company’s dedication to enabling enterprises to leverage the benefits of blockchain across various financial use cases.
As announced, by expanding its license portfolio and making strategic acquisitions, the crypto firm aims to strengthen its infrastructure solutions and take advantage of current market opportunities. Ripple’s press release further notes:
We will continue to leverage our strong financial standing to expand our product offerings, support new initiatives on the product roadmap, and serve a broader segment of customers.
CEO Anticipates Improved Product Offerings
The acquisition of Standard Custody follows Ripple’s previous acquisition of Metaco, a popular custody solution. Ripple recently announced custody partnerships with renowned banks such as HSBC, BBVA, and Zodia Custody. Additionally, the company has expanded its Ripple Payments offering to new territories, including Africa.
Standard Custody CEO Jack McDonald expressed confidence in the partnership, stating that together with Ripple, they would continue to innovate and extend their “leadership position” in providing crypto infrastructure. However, the transaction is subject to regulatory approval and standard closing conditions.
In a recent post on X (formerly Twitter, Ripple CEO Brad Garlinghouse highlighted the acquisition’s potential, stating that it would improve existing product offerings and allow for the exploration of new products and use cases while ensuring full compliance with regulations. Garlinghouse stated:
With Standard Custody & Trust Co., we’ll be able to improve existing product offerings for our customers, as well as explore new products and use cases, all in a fully compliant way. To date, Ripple has secured: nearly 40 U.S. money transmitter licenses, an MPI license from MAS, and VASP registration with Central Bank of Ireland (and counting!)
As of the current market update, the price of XRP is $0.5190, reflecting a 1% decline in value over the past 24 hours. However, XRP has experienced a broader downtrend of more than 10% over the past 30 days.
Featured image from Shutterstock, chart from TradingView.com