Blockchain technology firm Ripple has completed the acquisition of the New York-based Standard Custody and Trust Company and appointed the firm's CEO as Senior Vice President of Stablecoins. This acquisition has reportedly received all the necessary regulatory approvals, marking a milestone in the efforts to strengthen Ripple's enterprise infrastructure.
Entry into Stablecoin Market
According to Ripple, this acquisition includes a limited-purpose trust company regulated by the New York Department of Financial Services. It adds to Ripple's portfolio of nearly 40 US money transmitter licenses, a Major Payment Institution License from Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland.
Following the acquisition, Ripple announced plans to launch a USD-backed stablecoin to bridge the gap between blockchain and traditional finance. Due to their stability and utility, stablecoins are in demand, and Ripple has the opportunity to leverage its experience in building financial solutions for global institutions.
The stablecoin, set to be issued on the XRP Ledger, aims to enhance liquidity on XRPL's native decentralized exchange and support various financial use cases for developers, users, and businesses. To lead its stablecoin initiatives, Ripple has appointed Jack McDonald as Senior Vice President of Stablecoins. McDonald, who will also continue his role as CEO of Standard Custody, brings over three decades of experience in investment banking, asset management, and fintech.
Institutional Adoption
The acquisition of Standard Custody followed Ripple's purchase of Metaco in May 2023, further expanding its digital asset custody solutions. Speaking about the planned acquisition early this year, Jack McDonald, the CEO of Standard Custody, underscored the company's commitment to providing financial institutions with the platform to safeguard their digital assets.
McDonald expressed optimism about collaborating with Ripple, citing the blockchain firm's crypto expertise, relationships with financial institutions, and product offerings in payments and custody solutions.
In April, the trial between Ripple and the SEC over allegations of illegal cryptocurrency sales resumed. In the legal battle, the regulator accused Ripple Labs of offering unregistered securities in December 2020. Ripple's defense is based on the argument that its native cryptocurrency, XRP, should not be classified as a security.
This article was written by Jared Kirui at www.financemagnates.com.
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