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- Ripple completes acquisition of Standard Custody & Trust, enhancing product offerings and regulatory compliance.
- Ripple plans to launch a USD-backed stablecoin, leveraging XRP Ledger, to bridge blockchain and traditional finance.
Ripple was successful in acquiring the regulated digital asset custodian, Standard Custody & Trust Company. With the acquisition just receiving all required regulatory clearances, Ripple has reached a major turning point.
The company wants to improve its current product line and launch new ones, such stablecoins, to further demonstrate its dedication to regulatory compliance.
Blockchain researcher Collin Brown also appreciated this development, saying that the move showcases Ripple’s dedication to bridging blockchain and traditional finance.
BREAKING: #Ripple completes the Standard Custody acquisition and is ready to start its stablecoin with Jack McDonald as the new SVP of Stablecoins! 🚀🚀🚀
With regulatory approvals secured, Ripple strengthens its product offerings, including stablecoins. This move showcases… pic.twitter.com/8TSZWRIqSm
— Collin Brown (@CollinBrownXRP) June 11, 2024
Ripple Enhancing Regulatory Compliance
With the acquisition, Ripple adds a trust company under the New York Department of Financial Services’ jurisdiction to its extensive license portfolio.
This portfolio comprises about forty money transmitter licenses in the US, a Major Payment Institution License from the Singaporean Monetary Authority, and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland.
By bolstering its blockchain and digital asset solutions, these regulatory endorsements allow Ripple to better serve institutional clients in tokenization, storage, transfer, and value exchange.
Introduction of a USD-Backed Stablecoin
Together with the purchase, Ripple has disclosed intentions to introduce a stablecoin backed by USD. The important next step in bridging blockchain technology with conventional banking systems is this project. Stablecoins are becoming more and more in demand since they offer stability, trust, and real use.
To satisfy this need, Ripple intends to use its wealth of expertise to create financial solutions for international organizations. Issued on the XRP Ledger, the new stablecoin will allow a range of financial applications for developers, users, and enterprises, as well as increase liquidity for XRPL’s native decentralized exchange (DEX).
While he stays CEO of Standard Custody, Jack McDonald has been named Senior Vice President of Stablecoins by Ripple to oversee the stablecoin project. Jack McDonald joins the position having worked in fintech, asset management, financial services, and investment banking for more than 30 years.
Continued Expansion and Growth
Standard Custody is Ripple’s second large acquisition in the past year; in May 2023, it acquired Metaco, a top supplier of institutional digital asset custody systems, as previously reported by ETHNews.
These acquisitions serve to emphasize the increasing significance of digital assets, which include tokenized real-world assets like equities, bonds, and commodities, as well as stablecoin and central bank digital currency (CBDC).
Ripple intends to keep using its strong financial standing to go for smart acquisitions, so strengthening its position as the industry leader in enterprise blockchain.
Meanwhile, according to CoinMarketCap, the XRP price is currently around $0.4838, down 2.66% over the last 24 hours. It also shows a 7.42% bearish position during the last 7 days.
