Ripple to acquire Standard Custody & Trust Co. to expand US presence
- Ripple acquires Standard Custody & Trust Co. to bolster US presence and regulatory compliance.
- The acquisition enables Ripple to expand service offerings, including asset tokenization and custody solutions.
- The move comes amid reports of an agreed settlement between Ripple and the US SEC.
Ripple has announced the acquisition of Standard Custody & Trust Co., a wholly owned subsidiary of PolySign, marking its second recent purchase of a custody business.
With a focus on regulatory compliance and expanding its service offerings, Ripple’s acquisition aims to pave the way for broader financial capabilities within the United States.
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Ripple’s expansion into the US market
Ripple, known for its innovative blockchain-based payment solutions, is strategically positioning itself to further penetrate the US financial sector.
Despite ongoing legal disputes, Ripple remains committed to enhancing its regulatory qualifications and operational capabilities within the country. By acquiring Standard Custody & Trust Co., a company with a New York trust charter, Ripple aims to unlock new opportunities for growth and diversification in the US market.
In a tweet, Brad Garlinghouse, Ripple’s CEO, has reiterated the importance of the acquisition. He has stated:
“With Standard Custody, 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, MPI license from MAS, and VASP registration with Central Bank of Ireland (and counting!)”
Enhancing regulatory compliance and service offerings
The acquisition of Standard Custody & Trust Co. reflects Ripple’s proactive approach to addressing regulatory challenges and tapping into the potential of the US financial landscape.
By obtaining a New York trust charter through this acquisition, Ripple gains the ability to conduct a wider range of business activities within the United States. This includes offering in-house services to financial institutions interested in leveraging blockchain technology for asset tokenization and custody solutions.
With this strategic move, Ripple aims to provide its customers with enhanced flexibility and comprehensive services, positioning itself as a key player in the evolving financial ecosystem.