Ripple Completes Standard Custody Acquisition Amid U.S. Expansion

Global payment company Ripple has announced the completion of the acquisition of the New York-based digital asset custodian Standard Custody. This comes four months after Ripple publicly disclosed plans to acquire the custodian firm.

Earlier this year, Ripple announced its intent to acquire @StandardCustody, and today, we’re pleased to share that the acquisition is now complete!

Learn how this deal further enables Ripple to deliver on building the Internet of Value:https://t.co/pS3QxeOOWm

— Ripple (@Ripple) June 11, 2024

Ripple Acquires Standard Custody

Standard Custody is fully regulated under the New York State Department of Financial Services (NYDFS), a government agency regulating the financial markets within New York. By acquiring Standard Custody, Ripple becomes qualified to offer its services to investors in the state.

As part of the deal, Ripple has appointed Standard Custody’s CEO Jack McDonald as the Senior Vice President for Stablecoins, Ripple’s recently launched stablecoin subsidiary. In April 2024, Ripple launched a USD-backed stablecoin to expand its cross-border payment options. Ripple explained that the stablecoin prioritizes compliance with regulatory guidelines. The Ripple-owned stablecoin is integrated with the XRP Ledger and the Ethereum network.

With the completion of Standard Custody’s acquisition, Ripple boasts nearly 40 money transmitter licenses across the United States. It also has regulatory approval in Singapore and Ireland. Last year, Ripple acquired the Swiss-based crypto custodian Metaco for $250 million. With Metaco operating in countries like Germany, France, Turkey, and the United Kingdom, the blockchain payment company aims to expand its products into more jurisdictions.

Ripple vs. SEC

While Ripple makes moves to grow its business, its years-long legal dispute with the U.S. Securities and Exchange Commission (SEC) continues to linger.

In December 2020, the SEC sued Ripple Labs and its executives, Brad Garlinghouse and Chris Larsen, over claims of conducting unregistered securities sales. This means that the SEC classifies XRP as a security and argues that it must be registered with the agency before going to the public. This claim has been the lifeblood of the continuous legal case between the duo.