Cryptocurrency company Ripple has agreed a deal to acquire digital asset regulator platform Standard Custody & Trust Company to bolster its US expansion.
The acquisition seeks to strengthen Ripple’s commitment to regulatory compliance as well as boosting its existing product offerings. Standard Custody will enable Ripple to offer in-house services and push beyond its well-known payments offering by becoming a platform to help companies tokenize their financial assets.
Currently still embroiled in a lengthy and fierce regulatory battle with the US Securities and Exchange Commission (SEC), despite receiving a huge win last July, Ripple is aiming to make its digital assets more secure through the help of Standard Custody.
The New-York based company will supply its limited purpose trust charter to Ripple, as well as its money transmitter licence, to contribute to the crypto companies portfolio of regulatory licences – such as those in Singapore and Ireland – and keep them compliant and up-to-date.
Monica Long, President of Ripple, said: “Ripple and Standard Custody are dedicated to enabling enterprises to reap the benefits of blockchain across a host of financial use cases building institutional-grade solutions to tokenize, store, move, and exchange value.
“By expanding our licences portfolio and making smart acquisitions, Ripple is well-positioned to take advantage of the current market opportunities and further strengthen our crypto infrastructure solutions.
“We will continue to leverage our strong financial standing to expand our product offerings, support new initiatives on the product roadmap and serve a broader segment of customers.”
Standard Custody becomes the latest M&A venture for Ripple, having acquired custody solution platform Metaco last year to extend its solution reach across the globe.
Recently, the crypto firm announced custody partnerships with banks, such as HSBC, BBVA and Zodia Custody, and expansion to new territories for its Ripple Payments offering, such as Africa.
Jack McDonald, Standard Custody CEO, added: “Standard Custody provides financial institutions with the confidence and platform to safeguard their digital assets.
“Ripple continues to lead the industry with its deep crypto expertise, relationships with financial institutions and strong product offerings, across both payments and custody. Together with Ripple, we will further innovate and extend our leadership position in providing crypto infrastructure.”
