• 15 June, 2024
News

Ripple Completes Standard Custody Acquisition, Eyes Stablecoin Expansion

Ripple has announced the completion of its acquisition of Standard Custody & Trust Company, a regulated digital asset custodian. This acquisition, now backed by necessary regulatory approvals, is set to fortify Ripple’s existing infrastructure and pave the way for innovative financial products including stablecoins.

Strategic Expansion and Regulatory Compliance

The acquisition integrates a limited-purpose trust company regulated by the New York Department of Financial Services into Ripple’s extensive license portfolio. This portfolio already includes nearly 40 money transmitter licenses across the U.S., a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider registration from the Central Bank of Ireland. This enhancement will allow Ripple to offer more robust enterprise solutions for tokenizing, storing, moving, and exchanging value.

Jack McDonald Takes the Helm of Stablecoins Division

Following the acquisition, Ripple has appointed Jack McDonald as the Senior Vice President of Stablecoins, while he continues serving as the CEO of Standard Custody. With over three decades of experience in various financial sectors, McDonald is well-equipped to lead Ripple’s foray into the stablecoin market. His leadership is expected to drive the development and adoption of Ripple’s planned USD-backed stablecoin, which will utilize the XRP Ledger to facilitate liquidity and support a range of financial use cases.

Building on Earlier Initiatives

The announcement follows Ripple’s earlier commitment to acquire Standard Custody, reinforcing its strategic direction towards embracing traditional financial mechanisms through blockchain technology. This move is part of Ripple’s ongoing effort to bridge the gap between decentralized ecosystems and conventional finance.

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Focus on Stablecoins and Future Prospects

With the stablecoin initiative, Ripple aims to address the growing market demand for digital currencies that offer reliability, stability, and utility. The Ripple stablecoin, to be issued on the XRP Ledger, is designed to enhance the ledger’s native DEX and expand financial opportunities for developers, businesses, and users worldwide.

Previous Acquisitions and Continued Growth

This development comes on the heels of Ripple’s acquisition of Metaco in May 2023, another major player in institutional digital asset custody solutions. These strategic acquisitions not only expand Ripple’s capabilities in digital asset management but also underline its commitment to fostering a comprehensive ecosystem for tokenized assets, including stablecoins, CBDCs, and tokenized real-world assets.

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