Ripple Completes Standard Custody Acquisition, Appoints New Stablecoin Lead
Ripple has officially finalized its acquisition of Standard Custody & Trust Company, a regulated entity providing high-grade digital asset custody solutions. This acquisition, first announced earlier this year, has received the green light from all necessary regulatory bodies, including the New York Department of Financial Services (NYDFS), which oversees the operation of limited-purpose trust companies. This approval marks a significant step forward for Ripple, further strengthening its compliance framework across its existing and future product lines.
Ripple Closes Second Acquisition In One Year
The closure of this transaction extends Ripple’s already considerable portfolio of regulatory licenses. The company holds nearly 40 money transmitter licenses across the United States, a Major Payment Institution License in Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland. These credentials empower the company to offer enhanced institutional blockchain solutions, facilitating tokenization and the movement of digital assets with a strong emphasis on compliance and security.
Brad Garlinghouse, CEO of Ripple, expressed his satisfaction with the acquisition: “We are committed to pioneering the blockchain sector by integrating it seamlessly into the global financial ecosystem. Standard Custody’s expertise and our newly expanded regulatory approvals position us ideally to lead in this rapidly evolving space.”
The news comes shortly after Ripple announced a $1 billion XRP fund to foster innovations within the XRP Ledger ecosystem in Japan and South Korea. Moreover, the company recently announced its intention to introduce a USD-backed stablecoin. This product aims to capitalize on the increasing demand for reliable digital currencies that can provide stability, trust, and utility. The company intends to leverage its extensive experience in crafting financial solutions for the global market to introduce a stablecoin that could significantly enhance the utility of digital transactions and liquidity within the XRP Ledger.
The stablecoin, to be issued on XRPL, aims to serve a dual role: it will enhance liquidity for XRPL’s native Decentralized Exchange (DEX) and enable a broader array of financial applications for developers, businesses, and users. This initiative demonstrates Ripple’s strategy to bridge the gap between traditional financial systems and decentralized blockchain technology, making digital currencies more accessible and functional for a global audience.
To spearhead the development and market introduction of the stablecoin, Ripple has appointed Jack McDonald as the Senior Vice President of Stablecoins. McDonald, retaining his role as CEO of Standard Custody, brings an extensive background from working with investment banks, asset management firms, and fintech companies specializing in digital assets. His expertise is expected to be pivotal in guiding Ripple’s stablecoin strategy to fruition.
Commenting on his new role, McDonald shared, “As part of the deal close, I am thrilled to join Ripple as the SVP of Stablecoins. My focus will be leading the team that will bring Ripple’s stablecoin to market later this year, leveraging the robust capabilities of XRPL to support more efficient and scalable financial transactions.”
Via X, Garlinghouse added: “2 major acquisitions in ~1 year under Ripple’s belt with Metaco and Standard Custody, and a big welcome Jack McDonald! Jack is no stranger to the XRPL ecosystem (and to me!) – thrilled to have him join team Ripple, leading our stablecoin initiatives.”
The Standard Custody acquisition follows closely on the heels of the company’s purchase of Metaco in May 2023, another leader in institutional digital asset custody solutions. These strategic acquisitions underscore Ripple’s ambition to expand its influence and capabilities within the digital asset market, highlighting the company’s commitment to fostering trust, utility, and liquidity necessary for accessing new asset classes like tokenized real-world assets, stablecoins, and potentially central bank digital currencies (CBDCs).
At press time, XRP traded at $0.48394.
