Coinspeaker
Ripple to Expand US Presence with Standard Custody Acquisition
Ripple, a prominent player in the blockchain payments infrastructure sector, has made a strategic move to enhance its presence in the United States by acquiring digital assets custody firm Standard Custody & Trust Company.
According to an official press release, the move is part of the company’s broader strategy to expand its business offerings and integrate additional financial services into its portfolio.
Ripple to Expand Its Business Offerings
Despite facing legal challenges from the US Securities and Exchange Commission (SEC) regarding XRP, Ripple remains committed to growth and innovation.
Last year, the company’s CEO Brad Garlinghouse expressed concerns about regulatory ambiguity in the US, stating that the firm would hire a significant portion of its workforce from outside the country.
Moreover, Garlinghouse hinted at the possibility of exploring markets outside the US for its initial public offering (IPO), citing the perceived regulatory challenges posed by the SEC.
Despite the lack of regulatory clarity, the blockchain payment firm has further solidified its position in the US market to cater to a broader range of financial products and services with the acquisition of Standard Custody & Trust Company.
“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,” said Monica Long, Ripple President.
The financial terms of the acquisition, however, have not been disclosed by Ripple. The company said the deal is subject to approval by the US authorities.
Ripple Obtains Additional US License
Standard Custody & Trust Company is known for its custody and escrow services, operating under a charter granted by the New York State Department of Financial Services. It is also recognized as a qualified custodian under federal legislation.
Notably, the company holds one of only nine New York licensed crypto trust charters, alongside established firms like Coinbase, Fidelity Digital Assets, and Paxos.
Through this new acquisition, Ripple has obtained additional licenses in the US to legally operate in the country in compliance with local regulatory obligations. The blockchain payment firm said that Standard Custody’s a limited-purpose trust charter and money transmitter licenses will bolster its regulatory portfolio.
Today, we’re excited to announce that Ripple has signed a deal to acquire @StandardCustody, strengthening our product offerings and adding to our growing portfolio of regulatory licenses around the world. Learn more about our latest acquisition: https://t.co/JJp51mEabL
— Ripple (@Ripple) February 13, 2024
Ripple has been actively seeking regulatory approvals, having secured 40 US money transmitter licenses from various states to enhance its customer service capabilities in the region.
Both Ripple and Standard Custody have existing business connections. The key architects behind Standard Custody’s technology are Arthur Britto and David Schwartz, both of whom co-created the XRP Ledger, which is supported by Ripple for payment purposes.
Schwartz currently serves as Ripple’s chief technology officer, while Britto was the founder of PolySign, the parent company of Standard Custody and a co-founder of Ripple.
Meanwhile, the latest acquisition is not Ripple’s first in the US market, as the company acquired digital asset custody firm Metaco in 2023 for $250 million. Metaco boasts a prestigious client list, including BNP Paribas Securities Services, Societe Generale Forge, HSBC, and Standard Chartered’s Zodia Custody.
Ripple to Expand US Presence with Standard Custody Acquisition
