Ripple (XRP) Completes Acquisition of Standard Custody and Appoints Jack McDonald as Stablecoins Leader

Ripple (XRP) is finalizing the takeover of standard care of the company

Ripple, a prominent player in the blockchain and digital asset space, has completed the acquisition of Standard Custody & Trust Company. Standard Custody is a regulated custodian for enterprise-grade digital assets. This acquisition, announced earlier this year, has received the necessary regulatory approvals, marking a significant milestone in Ripple’s strategy to enhance its product offerings and pursue new ventures such as stablecoins.

Regulatory Compliance and Licensing

The closing of this acquisition adds a limited liability trust company regulated by the New York Department of Financial Services to Ripple’s already extensive portfolio of licenses. Ripple holds nearly 40 money transfer licenses across the United States, a major payment institution license with the Monetary Authority of Singapore, and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland. This move is expected to strengthen Ripple’s enterprise infrastructure solutions, enabling better service to institutional clients in tokenization, storage, transfer and exchange of value.

Introduction of a USD-backed stablecoin

In conjunction with the acquisition, Ripple announced plans to launch a USD-backed stablecoin. This initiative aims to bridge the gap between blockchain and traditional finance, responding to the growing demand for stablecoins that offer trust, stability and utility. Ripple plans to leverage its extensive experience in building financial solutions for global institutions to capture this growing market. The stablecoin will be issued on the XRP ledger, which will strengthen its position liquidity on the native decentralized XRPL exchange and supporting a variety of financial applications for developers, users and businesses.

Jack McDonald appointed Vice President of Stablecoins

To lead its stablecoin initiative, Ripple has appointed Jack McDonald as senior vice president of Stablecoins. McDonald will retain his current role as CEO of Standard Custody. With over three decades of experience in investment banking, asset management, financial services, fintech and digital assets, McDonald brings a wealth of expertise to the Ripple stablecoin team.

Strategic acquisitions and future plans

Standard Custody is Ripple’s second major acquisition in the last year, following the acquisition of Metaco in May 2023. Metaco is a leading provider of institutional digital asset custody solutions. These strategic moves underscore the growing importance of digital assets, including stablecoins, central bank digital currencies (CBDCs), and tokenized real-world assets such as stocks, bonds, commodities, and real estate. Ripple aims to build trust, utility and liquidity to unlock access to new asset classes and the broader token economy.

Ripple intends to leverage its strong financial position to make further acquisitions and strengthen its leadership position in the enterprise blockchain space. By securing the necessary licenses and focusing on regulatory compliance, Ripple is paving the way for broader institutional adoption of blockchain technology, from cross-border payments to digital asset custody and beyond.

More information can be found on the official Ripple website.

Image source: Shutterstock

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