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Ripple announced that it had reached an agreement to acquire Standard Custody & Trust Company. The objective is to strengthen its product offering amid the growing customer demand.
Also, acquiring Standard Custody aligns with its mission of furthering its commitment to regulatory compliance. Ultimately, the idea is to grow its enterprise blockchain solutions.
Ripple said that it was now suited to house institutional-grade solutions that support organizations in their endeavor of tokenizing, storing, exchanging, and moving value. Monica Long, the President of Ripple, said that they will now continue to leverage their strong financial standing to expand product offerings, serve a broader segment of customers, and support new initiatives that they have placed on the roadmap.
Most importantly, the development is likely to take Ripple’s portfolio of regulatory licenses forward by strengthening its presence in regions like the UK, Singapore, and Europe. Solutions serving a broader customer base will now cover multiple use cases.
Ripple continues to pursue its long-term initiatives to serve enterprises across the globe with crypto expertise. The company has almost 40 money transmitter licenses across the US. This is on top of having VASP registration with the Central Bank of Ireland and a Major Payment Institution License from the Monetary Authority of Singapore.
The move by Ripple came at a time when demand from customers was rising. It also comes at a time when businesses and institutions worldwide are starting to lean toward the blockchain sphere. Ripple is attempting to become an industry leader when it comes to enterprise blockchain solution providers without having to compromise on the position for the adoption of crypto for business.
Ripple’s announcement has, so far, yet to do much for the trading value of XRP. The token is dancing around $0.6114 with a slip of 4.78% in the last 24 hours at the time of writing this article. However, it does paint a bullish picture, with a rise of 5.225 in the previous seven days and a surge of 21.47% in the last 30 days.
Ripple previously backed the involvement of blockchain technology in the global payment sphere. It highlighted four key insights: real value, use cases, crypto concerns, efficiency, and sustainability.
Simply put, blockchain is the most desirable innovative solution for payment mechanisms in all regions. It brings cost-efficiency, transparency, and better financial inclusion. Some of the statistics have stated that blockchain is the way to go because the majority of users appreciate transparency and speed, along with lower costs for international and domestic payments. Blockchain payments are likely to drive businesses as they reduce the settlement window.
Use cases extend to cross-border and domestic transactions. What still remains at the center is the environmental impact of utilizing the technology. It is only if efficiency and environmental sustainability go hand in hand that users are willing to make more use of blockchain for payments.
That said, Ripple and Standard Custody & Trust Company are likely to conclude the acquisition process as soon as possible. It will enable Ripple to grow its enterprise blockchain solutions.