Ripple recently elaborated on the significance of its acquisition of Standard Custody & Trust Company, framing the move as a critical step towards achieving greater regulatory compliance within the digital asset space. The acquisition brings a United States digital asset custody provider under Ripple’s umbrella, bolstering the company’s efforts to be regulatory compliant.
In a detailed statement, Ripple outlined how the addition of Standard Custody & Trust Company to its portfolio not only underscores its dedication to regulatory compliance but also enhances its ability to meet growing customer demands for institutional-grade solutions. This strategic acquisition enables Ripple to offer services that facilitate the tokenization, storage, movement, and exchange of value, addressing the needs of a broadening customer base across various use cases.
Previously, Ripple has maintained a BitLicense as a limited-purpose trust company through its subsidiary, XRP II, since 2016. This regulatory milestone showcases Ripple’s ongoing efforts to navigate the complex legal landscape of digital currencies. David Schwartz, Ripple’s Chief Technical Officer, noted that XRP II serves as a specialized legal entity, akin to the structural approach Apple employs with entities for Apple Pay. This strategy allows for targeted regulation, ensuring that not all of Ripple’s operations are subjected to broad regulatory requirements.
By obtaining a TrustLicense through Standard Custody, Ripple emphasizes its strategy to acquire further licenses across key markets, including Singapore, the UK, and Europe, thereby broadening its operational footprint. Monica Long, Ripple’s President, highlighted the acquisition’s strategic importance, stating it as part of Ripple’s broader plan to expand its product offerings and reach. The move is portrayed as a deliberate effort to leverage Ripple’s strong financial position to support new product initiatives and cater to a diverse segment of customers.
The acquisition of standard custody has significant implications for Ripple, leading to an increase in its regulatory licenses. This includes nearly 40 money transmitter licenses across the United States. Additionally, Ripple has secured a Major Payment Institution License in Singapore and a Virtual Asset Service Provider registration in Ireland, further expanding its regulatory compliance and operational reach in key global markets.
As of now Ripple has not disclosed the specifics of the acquisition. Interestingly, the development was announced following the resignation of Adrien Trecanni as CEO of Metaco, though the precise timing of his resignation is not clear. Ripple’s acquisition of Metaco, a blockchain custody firm based in Switzerland, was completed in May for $250 million, marking another significant step in Ripple’s expansion strategy.
