In a move that will certainly expand the firm’s US options, Ripple Labs has acquired New York crypto trust company Standard Custody & Trust Co. The development will increase the firm’s regulatory qualifications, and allow it to increase its operations within the United States.
The development could also be a step in moving the firm beyond simply its current payment offerings. The company announced the acquisition amid its ongoing high-profile legal battle with the US Securities and Exchange Commission (SEC). The lawsuit is currently in its remedies phase.
Also Read: Ripple vs SEC Lawsuit: A Settlement on the Cards?
Ripple Expands US Options With Crypto Trust Acquisition
For the last several months of 2023, there was immense optimism surrounding Ripple (XRP). Indeed, that anticipation continued into 2024, with many predicting an end to its ongoing lawsuits. Although its SEC clash is still ongoing, the firm is setting its sights on once again participation in the US market.
Specifically, Ripple announced Tuesday that it has acquired New York crypto trust company, Standard Custody & Trust Co., to expand its US options. The deal is the second such custody business acquisition by the firm. Moreover, the deal still needs to be approved by New York regulators.
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The limited purpose trust charter located in New York that is being acquired by Ripple is set to expand just what the firm can offer. Specifically, it is now able to offer more in-house services to financial entities that are interested in tokenized assets. The movement is an effort to grow Ripple’s dealings, beyond just a payment network.
“We want to offer more and more of these infrastructure pieces to these financial institutions,” Ripple President Monica Long told Coindesk. “We see this as giving us a lot of flexibility.”
The deal is one part of a longer plan implemented by Ripple. Moreover, they are simultaneously seeking to complete their US money transmission licensing. Terms of the deal have not yet been shared, but it will allow Ripple to add both crypto custody and settlement business to its offerings. Therefore, customers will be able to rely on Ripple for custody. Instead of needing to utilize a different firm.