Ripple has received the formal protection and trust of the second security provider
Ripple has acquired Standard Custody & Trust Company, a United States digital asset protection provider. The company previously had a relationship with Ripple through its executives.
Standard Custodial & Trust Company provides custodial and transit services under a charter granted by the New York State Department of Financial Services and is a qualified custodian under federal law. “The Standard Protection Limited Purpose Trust Charter and its money transfer licenses contribute to Ripple's growing regulatory license portfolio,” Ripple said in a statement.
Ripple operates a payment network and supports the XRP (XRP) cryptocurrency. Along with its roots, Ripple says it already holds a New York bitlicense and about 40 money transfer licenses in US states.
Ripple has held the BitLicense since 2016 as a limited purpose trust company. According to Ripple Chief Technical Officer and Cryptographer David Schwartz, XRP II is the name of an entity owned by Ripple. Apple is similar to the way Apple Pay is authorized, so not all Apples should be run this way.
Terms of the formal custody and trust acquisition were not disclosed. It comes a day after Metaco CEO Adrian Trecani's resignation was announced, although Trecani's resignation has not been confirmed. Metaco, a blockchain storage company based in Switzerland, was acquired by Ripple in May for $250 million.
As we integrate Custody with Ripple's products, we see clear synergies with @StandardCustody to complement our payments and custody offering – all as a one-stop service for moving, converting and storing value in blockchain and crypto. https://t.co/N0q2VgVm2T
— Monica Long (@MonicaLongSF) February 13, 2024
Standard Protection and Trust is a subsidiary of PolySign, a digital asset infrastructure company founded by Ripple co-founder Arthur Britto, who is currently the president of PolySign. Britto maintains a low public profile, bordering on the mysterious. In the year He founded Ripple as OpenCoin in 2012 with Chris Larsen and Jed McCaleb. He is also credited as a co-designer of the XRP Ledger protocol. Schwartz, who is on the policing board, says Brito is a game designer.
Related: Court orders Ripple to disclose financial statements to SEC
In December 2020, the United States Securities and Exchange Commission filed charges against Ripple and its executives, Brad Garlinghouse and Larson, for offering unregistered securities in the XRP token. Ripple scored a major victory when a judge ruled in summary judgment that XRP was only a security when sold to investors. The SEC dismissed the charges against Garlinghouse and Larson, but the lawsuit against Ripple remains.
Ripple received a major payments institution license from the Monetary Authority of Singapore in October and registration as a virtual asset service provider from the Central Bank of Ireland in December.
Access to Ripple's formal protection and trust still requires regulatory approval.
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