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Ripple has announced its acquisition of Standard Custody & Trust Co., a subsidiary of PolySign, as part of its broader plan to expand operations within the United States. This acquisition follows Ripple's recent purchase of another custody business, highlighting the company's focus on regulatory compliance and the diversification of its service offerings.
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
While the acquisition is subject to regulatory approval, Ripple anticipates becoming the sole shareholder once the deal concludes. With this move, Ripple can leverage Standard Custody's limited purpose trust charter and money transmitter licenses, adding to its regulatory license portfolio.
Standard Custody, a pioneer in the digital asset space, offers services such as digital asset custody, escrow, and settlement for institutional clients. The company secured a New York trust license approval in May 2021, positioning it as a key player in the industry. Ripple's acquisition aims to leverage these capabilities to bolster its service offerings.
Unlocking New Opportunities
The acquisition of Standard Custody opens up opportunities for Ripple to offer a wider range of in-house services. This includes catering to financial firms interested in asset tokenization and custody solutions, and tapping into the potential of blockchain technology for diverse financial products.
Brad Garlinghouse, Ripple's CEO, reiterated the importance of the acquisition in a tweet, emphasizing the company's commitment to enhancing its presence in the U.S. financial sector.
With @StandardCustody, 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.
— Brad Garlinghouse (@bgarlinghouse) February 13, 2024
To date, @Ripple has secured: ✅ nearly 40 U.S. money transmitter licenses, ✅ MPI license from MAS, and ✅… https://t.co/0BrAWjBmhM
Strengthening Regulatory Licenses
During an interview with The Block, Ripple President Monica Long stressed the importance of the acquisition. Long stated: "What Standard Custody brings to the portfolio here is another set of important licenses with trust licenses in the U.S."
She highlighted the importance of having a comprehensive compliance component alongside technology to provide a full end-to-end solution for financial institutions exploring decentralized financial services.
Despite Ripple's global focus and ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC), the company looks forward to expanding its capabilities within the United States. The acquisition aligns with Ripple's strategic vision to go beyond its established payments network and venture into a broader spectrum of financial products utilizing blockchain technology.