Bitrabo Editorial
Ripple has officially completed the acquisition of Standard Custody & Trust Company, a regulated entity offering top-tier digital asset custody solutions. This acquisition, which was initially announced earlier this year, has now received approval from key regulatory bodies, including the New York Department of Financial Services (NYDFS), enhancing Ripple’s compliance framework for present and future products.
Ripple’s Recent Acquisition and Regulatory Portfolio
This latest acquisition adds to Ripple’s extensive list of regulatory licenses. With close to 40 money transmitter licenses in the USA, a Major Payment Institution License in Singapore, and a Virtual Asset Service Provider registration from the Central Bank of Ireland, Ripple is empowered to provide advanced institutional blockchain solutions focusing on compliance and security.
Ripple’s CEO, Brad Garlinghouse, praised the acquisition, stating, “We are dedicated to integrating blockchain seamlessly into the global financial system. With Standard Custody’s expertise and our expanded regulatory approvals, we are well-positioned to lead in this fast-evolving space.”
Parallel to this development, Ripple declared a $1 billion XRP fund to stimulate innovations within the XRP Ledger ecosystem in Japan and South Korea. Additionally, their plan to launch a USD-backed stablecoin aims to meet the rising demand for reliable digital currencies that offer stability, trust, and utility. Leveraging their experience in global financial solutions, Ripple aims to introduce a stablecoin enhancing digital transactions and liquidity within the XRP Ledger.
The new stablecoin, to be issued on XRPL, will improve liquidity for XRPL’s Decentralized Exchange (DEX) and expand financial applications for developers, businesses, and users. This move aligns with Ripple’s strategy to bridge traditional financial systems with decentralized blockchain technology, making digital currencies more accessible globally.
To oversee the stablecoin’s development and rollout, Jack McDonald has been appointed as the Senior Vice President of Stablecoins. McDonald, also serving as CEO of Standard Custody, brings a wealth of experience from roles in investment banks, asset management firms, and fintech companies specializing in digital assets. His expertise will be crucial in steering Ripple’s stablecoin strategy.
McDonald expressed his excitement about the new role, stating, “I am thrilled to join Ripple as the SVP of Stablecoins. My focus will be leading the team to launch Ripple’s stablecoin later this year, utilizing XRPL’s capabilities for more efficient and scalable financial transactions.”
Ripple’s acquisition of Standard Custody closely follows their purchase of Metaco in May 2023, emphasizing the company’s commitment to expanding its presence and offerings in the digital asset market. These strategic moves demonstrate Ripple’s dedication to promoting trust, utility, and liquidity for accessing new asset classes like tokenized real-world assets, stablecoins, and potentially central bank digital currencies (CBDCs).
As of the latest update, XRP was trading at $0.48394.