Global payment company Ripple has announced its plan to acquire the New York-based digital asset custodian Standard Custody. The move follows Ripple’s plan to expand its portfolio of regulatory licenses across the United States and other parts of the world.
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 to Acquire Standard Custody
The acquisition plan enables Ripple to access Standard Custody’s New York trust charter and money transmitter licenses, offering crypto payment services to U.S.-based users. Still, the acquisition must be endorsed by the New York State Department of Financial Services, the agency responsible for regulating financial products within the state.
Ripple’s continuous expansion in the United States comes on the heels of a years-long legal battle with the U.S. Securities and Exchange Commission (SEC) over the supposed unregistered sales of the company’s native cryptocurrency, XRP. Reports show the legal tussle mostly going against the American regulatory body.
Explaining how Standard Custody will sync with Ripple’s mission of offering global payments, Standard Custody’s CEO Jack McDonald said:
“Standard Custody provides financial institutions with the confidence and platform to safeguard their digital assets. Ripple continues to lead the industry with its deep crypto expertise, relationships with financial institutions and strong product offerings, across both payments and custody. Together with Ripple, we will further innovate and extend our leadership position in providing crypto infrastructure.”
Ripple’s Continued Expansion to Global Regions
Ripple noted in its latest announcement that the soon-to-be-acquired digital asset custodian will enable the payment company and its subsidiaries to have about 40 money transmitter licenses across the U.S.
Last year, Ripple acquired the crypto custodian firm Metaco for $250 million, expanding its geographical reach into Switzerland, a European country. The blockchain firm has also expanded its terrain into Dubai, Ireland, and Singapore. It has partnered with key industry leaders like HSBC, BBVA, and others.
