Ripple has officially completed its acquisition of Standard Custody & Trust Company, and this new action is expected to enhance the blockchain company’s efforts to establish a USD stablecoin.
Ripple, a prominent blockchain payments company, has announced the successful completion of its acquisition of Standard Custody & Trust Company, a regulated digital asset custodian.
However, the strategic expansion of Ripple is now official, as regulators have approved this significant move.
Also, it improves its capacity to provide reliable digital asset custody solutions.
Ripple Acquires Standard Custody
Ripple’s most recent acquisition serves as confirmation of its aspiration to incorporate blockchain technology into the global financial system.
Enterprise-grade custody services are the hallmark of Standard Custody & Trust Company.
Subsequently, Ripple’s license portfolio acquires a limited purpose trust corporation that is subject to regulation by the New York Department of Financial Services.
The regulatory accomplishments of Ripple now encompass nearly 40 U.S. state money transmitter licenses.
Additionally, the blockchain company has achieved a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland and a Major Payment Institution License from Singapore’s Monetary Authority.
The conclusion of this acquisition is a critical juncture for Ripple, as it is consistent with its strategy to enhance its enterprise infrastructure solutions.
By utilizing blockchain and digital asset technology, these solutions facilitate the efficient tokenization, storage, movement, and exchange of value for institutional customers.
In addition, this acquisition enables Ripple to investigate new product offerings, such as its forthcoming USD-backed stablecoin.
Stablecoins are Ripple’s attempt to reconcile the divide between blockchain and conventional finance.
Additionally, its objective is to satisfy the increasing demand for stablecoins that provide utility, stability, and trust.
Jack McDonald as Senior Vice President of Stablecoins
Ripple intends to issue the stablecoin on the XRP Ledger, capitalizing on its extensive experience in providing financial solutions on a global scale.
This will increase the liquidity on the Ledger’s native decentralized exchange (DEX) and facilitate a wider variety of financial use cases for businesses, consumers, and developers.
Ripple’s objective is to provide their enterprise consumers with comprehensive digital asset services by integrating stablecoin functionality with its established XRP payment solutions.
The upcoming stablecoin launch and this strategic acquisition serve as a testament to Ripple’s dedication to the advancement of blockchain technology in the financial sector, regulatory compliance, and innovation.
Additionally, the appointment of Jack McDonald, the CEO of Standard Custody, as the Senior Vice President of Stablecoins at Ripple is a primary feature of this acquisition.
McDonald’s leadership and expertise are expected to be instrumental in the direction of Ripple’s stablecoin initiatives.
This appointment is consistent with Ripple’s strategic objective to introduce its own stablecoin.
Meanwhile, McDonald will continue to serve as the CEO of Standard Custody.
