In a strategic move poised to broaden its operational scope in the United States, Ripple Labs has successfully acquired Standard Custody & Trust Co., a crypto trust company based in New York. This acquisition is anticipated to bolster Ripple’s regulatory standing and enable an expansion of its services within the U.S. market.
The acquisition marks a significant step for Ripple beyond its traditional payment solutions, particularly as the company navigates through an ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC), currently in the remedies phase.
Ripple’s Ambitious Expansion in the U.S. Crypto Market
As the optimistic atmosphere surrounding Ripple (XRP) extended from the latter part of 2023 into 2024, industry observers anticipated resolution in its legal battles. Despite the ongoing SEC litigation, Ripple is now strategically positioning itself for a more active role in the U.S. market.
In a recent announcement, Ripple revealed its acquisition of Standard Custody & Trust Co., signaling its commitment to enhancing its presence in the U.S. financial landscape. This acquisition, the second of its kind by Ripple, is still pending approval from New York regulators.
The acquisition involves a limited purpose trust charter based in New York, presenting Ripple with expanded capabilities to provide in-house services to financial institutions interested in tokenized assets. Ripple’s President, Monica Long, emphasized the company’s goal to offer comprehensive infrastructure support to financial entities, highlighting the potential for increased flexibility.
This move is part of a broader strategy by Ripple, which also includes pursuing U.S. money transmission licensing concurrently. While specific details of the deal remain undisclosed, it positions Ripple to incorporate crypto custody and settlement services into its portfolio, allowing customers to entrust Ripple with both custody and settlement needs, eliminating the need for multiple service providers.