Ripple to acquire Standard Custody & Trust Co. to expand US presence
Ripple acquires Standard Custody & Trust Co. to strengthen US presence and regulatory compliance. The acquisition will allow Ripple to expand its service offerings, including asset tokenization and escrow solutions. The move comes amid reports that an agreement has been reached between Ripple and the US SEC.
Ripple has announced the acquisition of Standard Custody & Trust Company, a wholly-owned subsidiary of PolySign, marking its second acquisition of a custody business in recent years.
By focusing on regulatory compliance and expanding its service offerings, Ripple's acquisition aims to pave the way for expanded financial capabilities in the United States.
The expansion of Ripple to the American market
Known for its blockchain-based payment solutions, Ripple is strategically positioning itself to further penetrate the US financial sector.
Despite ongoing legal disputes, Ripple is committed to enhancing its regulatory capabilities and operational capabilities in the country. By acquiring Standard Custody and Trust Company, a New York chartered trust, Ripple aims to open up new opportunities for growth and diversification in the US market.
Ripple CEO Brad Garlinghouse reiterated the importance of the acquisition on Twitter. he said.
“With the protection of standards, we can improve the product offerings offered to our customers, as well as explore new products and use cases, all in a fully compliant manner. To date, Ripple has secured: nearly 40 US money transmitter licenses, an MPI license from MAS and a VASP registration with the Central Bank of Ireland (and counting!)”
Improving regulatory compliance and service delivery
Standard Custody & Trust Co. The acquisition reflects Ripple's proactive approach to addressing regulatory challenges and leveraging the potential of the US financial landscape.
By acquiring a New York trust charter through this acquisition, Ripple will gain the ability to conduct extensive business activities in the United States. This includes providing in-house services to financial institutions looking to use blockchain technology for asset tokenization and security solutions.
With this strategic move, Ripple aims to provide its customers with enhanced flexibility and comprehensive services, positioning itself as a key player in the evolving financial ecosystem.
