Standard Custody & Trust Co., a company based in New York, is about to become part of Ripple, the global payments company. This acquisition move is aimed at beefing up Ripple's credentials when it comes to regulations. By getting hold of a company with a New York trust charter, Ripple aims to broaden its scope of operations in the United States, possibly moving beyond just being a payments network.
This isn't Ripple's first rodeo in acquiring a custody business. Nope, it's their second recent one. But before they can pop the champagne, they need the thumbs-up from the New York regulator.
According to Ripple, they've struck a deal to snag Standard Custody & Trust Co. This is all part of Ripple's grand plan to get a New York trust charter, helping it navigate the complex world of U.S. regulations. Despite their tussle with the U.S. Securities and Exchange Commission (SEC), Ripple isn't backing down from expanding its turf in the U.S. The trust charter they're eyeing in New York will open doors for them to offer more services, especially to financial firms keen on getting into tokenizing assets. Ripple's not just about payments anymore; they're eyeing a broader range of financial products where blockchain tech can shine.
Monica Long, Ripple's President, spilled the beans in an interview with CoinDesk. She talked about Ripple's big plans to provide financial institutions with more infrastructure pieces. It's all about giving their clients more options and flexibility, she said, stressing that it's a long-term project. Oh, and Ripple's also working on getting the rest of its U.S. money transmission licensing sorted.
Now, about the deal with Standard Custody & Trust—Ripple's lips are sealed about the terms. They're waiting on the nod from the New York Department of Financial Services. Once it's greenlit, Ripple will have a new feather in its cap: a crypto custody and settlement business. That means Ripple's customers can keep their assets safe with Ripple itself, no need to look elsewhere.
But let's not forget Ripple's legal tussle with the SEC over XRP. While one judge seems to be on Ripple's side, the battle's far from over. Monica Long isn't sweating it too much though; she says Ripple's concern isn't just about this legal scuffle, but about the overall uncertainty in digital asset regulations. Nonetheless, the U.S. remains a big market for Ripple, and they're hopeful that it could lead the way in fostering innovation.
This latest acquisition by Ripple comes after their buyout of another crypto custody firm, Metaco, last year. So, Ripple's on the move, adding pieces to its puzzle and eyeing a bigger slice of the financial pie.