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Ripple has completed the acquisition of the regulated digital asset custody firm Standard Custody & Trust Company, gearing up to launch its stablecoin.
The enterprise blockchain company announced this move on Tuesday, marking Ripple’s strategic expansion into the stablecoin market, aimed at bridging the gap between blockchain technology and traditional finance.
“Earlier this year, Ripple announced its intention to acquire Standard Custody & Trust Company, an enterprise-grade, regulated digital asset custody firm. This acquisition has now received the necessary regulatory approval and has been finalized,”
Ripple stated.
This acquisition is a significant milestone for Ripple as it strengthens its product offerings and ventures into new areas such as stablecoins, while maintaining its commitment to regulatory compliance. Ripple emphasized its collaboration with global regulators, highlighting its vision to integrate blockchain within the global financial infrastructure under established regulatory frameworks.
By adding Standard Custody to its portfolio, Ripple has gained access to a limited purpose trust company regulated by the New York Department of Financial Services, thereby enhancing its enterprise infrastructure solutions for tagging, storing, moving, and trading digital assets. This acquisition follows Ripple’s recent announcement of plans to launch a US dollar-backed stablecoin, aligning with the market’s growing demand for stablecoins that offer trust, stability, and utility.
The stablecoin will be issued on the XRP Ledger, aiming to enhance liquidity and support various financial use cases on the ledger. Last week, Ripple President Monica Long clarified that they intend to launch the product this year, adding that the company plans to utilize the stablecoin and its native cryptocurrency XRP in its payment solutions to meet the needs of global enterprise clients.
Nevertheless, following the announcement, Standard Custody CEO Jack McDonald expressed gratitude and announced that he would serve as Ripple’s Senior Vice President of Stablecoin, while retaining his position at Standard Custody.
Ripple CEO Brad Garlinghouse also expressed excitement about McDonald’s appointment and the upcoming stablecoin, emphasizing Ripple’s dedication to innovation and leadership in the enterprise blockchain space.
“A warm welcome to Jack McDonald. Jack is no stranger to the XRPL ecosystem (and to me)—I’m thrilled he’s joining the Ripple team to lead our stablecoin program,”
Garlinghouse wrote.
This acquisition of Standard Custody follows Ripple’s May 2023 acquisition of Metaco, a leading institutional digital asset custody solution provider, further expanding Ripple’s capabilities in the cryptocurrency market.
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