In a move poised to shake up the crypto landscape in the United States, global payments giant Ripple has announced the acquisition of Standard Custody & Trust Co., a New York-based firm specializing in digital asset custody and settlement services.
This strategic acquisition signals Ripple’s intent to broaden its offerings and regulatory capabilities within the US market, despite ongoing legal battles with the Securities and Exchange Commission (SEC).
The key takeaway lies in Standard Custody’s coveted New York trust charter, which opens doors for Ripple to expand its service portfolio beyond its core payments network functionality. This acquisition empowers Ripple to:
- Offer custody and settlement services in-house: Currently, Ripple relies on external partners for these services. Bringing them under one roof streamlines operations and potentially reduces costs for clients.
- Tokenize assets: The trust charter allows Ripple to facilitate the tokenization of various assets, such as securities and real estate, potentially unlocking new business avenues in the burgeoning tokenized securities market.
- Enhance regulatory compliance: The acquisition strengthens Ripple’s regulatory standing in the US, a crucial aspect considering the ongoing SEC lawsuit and the evolving regulatory landscape surrounding cryptocurrencies
While the deal still awaits approval from the New York Department of Financial Services, it marks a bold move by Ripple to solidify its presence in the US, a market previously considered less than enthusiastic towards the company due to the SEC case.
Despite years of international success, Ripple’s US operations have faced headwinds. This acquisition suggests a renewed commitment to navigating the regulatory complexities and capturing the vast potential of the US market.
The acquisition of Standard Custody follows last year’s acquisition of Metaco, a custody solution preferred by banks around the world.
Similarly last year, Ripple Labs also moved into Africa with the opening of XRP Healthcare in Uganda.
According to Ripple, the closing of the transaction is subject to regulatory approval and standard closing conditions. TD Cowen served as the exclusive financial advisor to PolySign.
