Ripple secures New York trust charter via Standard Custody takeover
Ripple today announced plans to buy Standard Custody & Trust Co., aiming to get a New York trust charter to upgrade its regulatory credentials in the United States.
This move, still awaiting regulatory green light, will see Ripple become the sole owner of Standard Custody. The acquisition is a strategic step for Ripple, allowing it to leverage Standard Custody’s trust and money transmitter licenses.
Ripple President Monica Long said the deal adds crucial licenses to Ripple’s portfolio, enabling them to offer comprehensive blockchain-based financial services. With existing licenses in the U.S. and Singapore, and efforts to secure more in the UK and Europe, Ripple is expanding its regulatory footprint.
Standard Custody is known for its institutional-grade digital asset custody, escrow, and settlement services. It was one of the early digital asset firms to secure a New York trust license in May 2021. As a PolySign subsidiary, it’s backed by decent funding that cements its position in the digital asset infrastructure market.
Ripple’s ambition goes beyond its current payment network, eyeing a broader role in the financial sector by enabling institutions to use blockchain for various services. Despite its legal battles with the SEC, Ripple was keen on expanding its services in the U.S., with the New York trust charter opening new avenues for offering in-house services.
The acquisition also comes as Ripple is set to expand its payments business in the United States, moving beyond its current focus where 90% of its business is outside the U.S. Oliver Segovia, Ripple’s senior director and head of product marketing, announced that after a relatively quiet period of three years in the U.S., Ripple Payments is ready to unveil new product updates. These updates are powered by the company’s money transmitter licenses (MTLs) that cover the majority of U.S. states.
To kickstart this expansion, Ripple hosted an event at its new San Francisco headquarters, which featured representatives from prominent payment firms like Adyen, Marqeta, and Plaid, focusing on Ripple’s blockchain and payments outlook.
This announcement follows Ripple’s recent update of its crypto-enabled cross-border payments solution. The revamped Ripple Payments, previously known as RippleNet, allows businesses to utilize blockchain technology for faster, cheaper, and more efficient international payments.
Ripple president Monica Long noted that the blockchain company has always aimed to create products addressing real-world problems for customers. As such, the latest evolution in Ripple Payments is an extension of their ongoing efforts to enhance the cross-border payments experience through innovative technology.