Ripple Expands U.S. Business by Acquiring New York Crypto Company

Ripple Expands U.S. Business by Acquiring New York Crypto Company

By Jakub Lazurek

14 Feb 2024 (9 months ago)

2 min read

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Ripple aims to grow U.S. presence with acquisition of NY's Standard Custody & Trust Co

Ripple is set to acquire Standard Custody & Trust Co. to enhance its regulatory credentials in the U.S. This move, part of Ripple's strategy to broaden its U.S. business scope, could allow it to extend its services beyond its primary function as a payment network. The acquisition, which is Ripple's second custody business purchase, is pending approval from New York regulators.

By purchasing Standard Custody & Trust Co., Ripple aims to obtain a New York trust charter, marking a step forward in its U.S. regulatory license expansion. Despite facing legal challenges with the U.S. Securities and Exchange Commission (SEC), Ripple is looking to diversify its offerings, including asset tokenization for financial institutions. This acquisition will enable Ripple to provide more services directly, enhancing flexibility for its institutional clients.

Ripple President Monica Long stated in a CoinDesk interview that the company's goal is to supply financial institutions with various infrastructure components using blockchain technology. This acquisition is seen as a long-term initiative to complement Ripple's efforts in obtaining U.S. money transmission licensing. Adding Standard Custody & Trust to its portfolio allows Ripple's customers to manage custody internally rather than relying on external partners.

Despite its ongoing legal battle with the SEC over the classification of XRP as a security, Ripple remains committed to the U.S. market. Long emphasized the company's focus on overcoming regulatory uncertainties to position the U.S. as a leader in digital asset innovation. Ripple's acquisition of Standard Custody & Trust follows a previous purchase of cryptocurrency custody firm Metaco, underscoring its investment in expanding its service capabilities.

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