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Ripple Signals Regulatory Ambition with Standard Custody Acquisition Plan

Last Updated February 14, 2024 4:03 PM
Teuta Franjkovic
Last Updated February 14, 2024 4:03 PM

Key Takeaways

  • Ripple focuses on regulatory compliance with the Standard Custody acquisition.
  • The company’s recent move showcases its commitment to innovation in the blockchain sector.
  • TD Cowen’s role shows TradFi’s support for crypto-finance convergence.

Ripple reveals its aims to strengthen its regulatory position with plans to acquire  Standard Custody & Trust Company.

This move, pending approval, would significantly expand Ripple’s digital asset offerings and licensing, accelerating its growth in the blockchain sector.

Ripple Prioritizes Compliance with Standard Custody Acquisition

Ripple’s strategic acquisition  of Standard Custody aims to reinforce its foothold in the crypto and blockchain industry, The move underscoring a significant trend toward the fusion of blockchain technology and digital assets with regulated financial ecosystems. As detailed in a press release, the move leverages Standard Custody’s  trust charter and money transmitter licenses, marking a pivotal step for Ripple in consolidating its regulatory framework.

The inclusion of Standard Custody into Ripple’s portfolio augments its collection of regulatory approvals, notably the New York Bitlicense and a Major Payment Institution License from Singapore.

Commitment to Innovation, Signaling Strong Finances in Expansion Move

Monica Long, Ripple’s president, highlighted  the commitment of both Ripple and Standard Custody to empower enterprises through blockchain, facilitating a wide range of financial applications. This collaboration aims at developing institutional-level solutions for the tokenization, storage, transfer, and exchange of value, paving the way for broader adoption of blockchain in financial services.

She added :

“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.”

Ripple’s global footprint expands with the acquisition of Standard Custody, on the heels of its Metaco purchase . These strategic moves, combined with partnerships with major banks and entry into new markets, underscore Ripple’s commitment to growth in the payments and custody sectors, with operations now in 20 regulatory jurisdictions and 70 countries.

Jack McDonald, Standard Custody’s CEO commented :

“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.”

Standard Custody & Trust Company’s Founder Is XRP-Ledger Creator 

Standard Custody & Trust Company operates as a subsidiary under PolySign, a company specializing in digital asset infrastructure established by Arthur Britto , one of Ripple’s co-founders. Despite keeping a low profile, Britto played a key role in the development of the XRP Ledger protocol.

The acquisition of Standard Custody & Trust by Ripple awaits regulatory consent, underscoring the critical role of regulatory compliance within the cryptocurrency sector.

Acquisition Facilitated by TD Cowen, Signaling Wall Street Interest

This strategic acquisition move will bolster Ripple’s regulatory credentials and digital asset custody solutions. However, the transaction is subject to regulatory approval and other standard closing conditions, underscoring the growing regulatory scrutiny of the cryptocurrency sector.

TD Cowen acted as the exclusive financial advisor to Polysign throughout the acquisition process. A prominent investment bank in the technology space, TD Cowen likely played a crucial role in facilitating the deal. The involvement of established financial institutions highlights the increasing convergence of traditional finance and the rapidly evolving world of blockchain and cryptocurrencies.

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