Standard acquisition plans and Stablecoin

  • Ripple completes acquisition of Standard Custody & Trust, enhancing product offerings and ensuring regulatory compliance.
  • Ripple plans to launch a USD-backed stablecoin using the XRP Ledger to connect blockchain and traditional finance.

Ripple has successfully acquired regulated digital asset custodian, Standard Custody & Trust Company. After receiving all required regulatory approvals, the Ripple acquisition has reached a major turning point.

The company wants to enhance its current product line and launch new ones, such as stablecoins, to further demonstrate its commitment to compliance.

Blockchain researcher Collin Brown also appreciated the development, saying that the move shows Ripple’s commitment to combining blockchain and traditional finance.

Ripple increases regulatory compliance

With the acquisition, Ripple adds to its extensive licensing portfolio a trust company under the jurisdiction of the New York Department of Financial Services.

This portfolio includes approximately forty US money transfer licenses, a major payment institution license from the Monetary Authority of Singapore, and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland.

By strengthening blockchain and digital asset solutions, these regulations allow Ripple to better serve institutional clients in tokenization, storage, transfer and exchange of value.

Introduction of a USD-backed stablecoin

With the purchase, Ripple revealed its intention to launch a USD-backed stablecoin. The next important step in combining blockchain technology with conventional banking systems is this project. Stablecoins are becoming more and more popular because they offer stability, trust, and real-world use.

To meet this need, Ripple intends to leverage its wealth of expertise to create financial solutions for international organizations. The new stablecoin, issued on the XRP ledger, will enable a range of financial applications for developers, users and enterprises, as well as increase liquidity on XRPL’s native decentralized exchange (DEX).

Jack McDonald, while remaining CEO of Standard Custody, has been appointed Senior Vice President of Stablecoins by Ripple to oversee the stablecoin project. Jack McDonald joins after more than 30 years in fintech, asset management, financial services and investment banking.

Continuous expansion and development

Standard Custody is Ripple’s second major acquisition in the last year; in May 2023, it acquired Metaco, as previously reported by ETHNews, a leading provider of institutional custody systems for digital assets.

These acquisitions serve to highlight the growing importance of digital assets, which include tokenized real-world assets such as stocks, bonds and commodities, as well as stablecoins and central bank digital currency (CBDC).

Ripple intends to continue to leverage its strong financial position for smart acquisitions, thereby strengthening its position as a leader in the enterprise blockchain industry.

Meanwhile, according to CoinMarketCap, the price of XRP is currently around $0.4838Down 2.66% in the last 24 hours. It also shows A 7.42% bearish position in the last 7 days.