In its advanced communication, the San Francisco-based crypto firm Ripple entered into an acquisition deal with Standard Custody and Trust Company. The acquisition of Standard Custody & Trust Co. will enable Ripple to expand its geographic presence in the US.
For years, the Ripple team has strived to gain dominance in the vibrant US market despite facing regulatory backlash from the Securities and Exchange Commission (SEC).
Ripple Acquires Standard Custody
A review of the acquisition agreement demonstrated that if the deal goes as planned, Ripple will become the sole shareholder of assets owned by Standard Custody & Trust.
The report demonstrated that the acquisition deal allows the Ripple team to use Standard Custody’s trust and charter to offer exclusive in-house services to financial institutions seeking to tokenize real-world assets.
The acquisition demonstrates that Ripple seeks to expand its product offering in payment services and financial products. Apart from this, the acquisition deal will boost Ripple’s licensing portfolio, allowing the payment company to operate more compliantly.
Even though the two partners have not secured regulatory approval for the proposed acquisition agreement, Ripple believes that the deal will offer endless opportunities for the company to create more value for its institutional clients.
Ripple Seeks to Gain Strategic Advantage in US
An announcement conveyed by the President of Ripple, Monica Long, demonstrated that the acquisition of Standard Custody enables Ripple to obtain additional licenses in the US. She stated that the Standard Custody trust and charter licenses were necessary for Ripple to secure regulatory approval in the US.
The executive underscored the need for Ripple to meet the regulatory compliance in the US. Monica described the acquisition of Standard Custody as a long-term project that will enable Ripple to gain dominance in the flooded US market.
With this development, the executive confessed that Ripple will prioritize completing the remaining money transmitter licenses in the US to be fully compliant.
She confirmed that the US licenses were necessary for the payment company to offer “end-to-end solutions.” Following the multiple legal actions facing Ripple, the company has been seeking to meet regulatory requirements in various jurisdictions.
Monica confessed that Ripple recently obtained an MPI license in Singapore. Beyond this, the executive stated that Ripple is seeking to obtain more permits in Europe and the UK. In a recent announcement, the Ripple team revealed plans to expand its custody team in Europe. Futhermore, the Ripple team plans to work closely with clients across five continents.
Attractiveness of US Crypto Market
In her statement, Monica admitted that the US was a significant market for most crypto firms. Citing the latest developments in the crypto industry, Monica believes that the US will become a leader in driving innovation in the digital sector.
She anticipates that the acquisition will allow Ripple to leverage blockchain’s power to meet institutional clients’ needs. The executive noted that the acquisition of Standard Custody came at the appropriate time when Ripple sought to expand its revenue streams.
Monica stated that Standard Custody offered first-world digital assets custodial and settlement services for institutional clients. A review of Standard Custody wallet demonstrated that the company received the first-ever de novo approval in New York in May 2021.
Moreover, the company has attained a considerable market position in the US and has actively entered into strategic partnerships with fast-paced companies. In 2022, the Standard Custody participated in the Polysign Series C funding round that generated $53 million.
