Ripple’s Expansion with Acquisition of Standard Custody & Trust
Ripple recently acquired Standard Custody & Trust Company to bolster its regulatory presence in the United States. This strategic move allows Ripple to offer secure and compliant crypto solutions amidst its legal battle with the SEC. The acquisition enhances Ripple’s growth strategy, broadening its offerings and solidifying its position in the U.S. market. For financial institutions interested in asset tokenization, the acquisition will enable Ripple to provide more comprehensive in-house services, expanding beyond its established payments network.
Ripple’s Focus on U.S. Markets
Despite its international focus, Ripple is strategically expanding in the United States. The acquisition of Standard Custody & Trust, pending approval from the New York Department of Financial Services, will introduce a crypto custody and settlement service to Ripple’s suite of offerings. This addition allows Ripple’s clients to retain custody of their assets directly with Ripple, eliminating the need for external partners.
Ripple President Monica Long emphasized the importance of the acquisition, stating, “What Standard Custody brings to the portfolio here is another set of important licenses with trust licenses in the U.S. Being able to provide not just the technology component to financial institutions who want to use blockchain for all types of decentralized financial services, you also need a compliance piece. And so these licenses are really key to us being able to deliver that full end-to-end solution.”
Ripple’s Ongoing Legal Battle with the SEC
Despite the legal battle with the SEC, Ripple is prioritizing its business expansion. Ripple is confident in securing a favorable outcome in the SEC lawsuit as the case continues. A New York judge recently mandated Ripple Labs to disclose specific financial records and details regarding its institutional sales of XRP tokens, following a request from the U.S. Securities and Exchange Commission (SEC) made in early January.
In a significant decision last July, Judge Analisa Torres found only Ripple’s institutional sales of XRP violated U.S. laws. This outcome was viewed as a win by the cryptocurrency community, marking a step forward in defining regulatory approaches to digital currencies.
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