Ripple buys Standard Custody, names Jack McDonald SVP of stablecoins

Ripple has performed exceptionally well in achieving yet another feat, as the company successfully struck a deal to acquire Standard Custody & Trust Company, a virtual asset custodian. The regulatory authorities’ approval of this important acquisition will complement Ripple’s existing suite of products and expand into other products, such as stablecoins. However, with this growth, Ripple has remained strong in its commitment to follow the set regulations.

The history of Ripple’s cooperation with international authorities and politicians proves that the company believes that blockchain should complement existing legal and regulatory systems and become an indispensable part of the global financial environment. he acquisition also adds a limited-purpose trust company to Ripple’s list of licensees under the New York Department of Financial Services. 

This portfolio already boasts almost 40 money transmitter licenses across the United States, as well as a Major Payment Institution License in the Monetary Authority of Singapore and a Virtual Asset Service Provider registration with the Central Bank of Ireland. This diverse portfolio boosts Ripple’s enterprise infrastructure solutions, allowing it to tokenize, store, transfer, and settle values for institutions that use blockchain and digital assets.

This transaction was completed shortly after Ripple announced plans to launch a USD-backed stablecoin. It is seen as Ripple’s next logical move toward bringing the worlds of blockchain and legacy finance closer together. The demand for trust, stability, and utility stablecoins is immense, which is why Ripple offers a strong opportunity to enter this market with its extensive experience building financial services for enterprises. 

Ripple is building a stablecoin that will be created on the XRP Ledger to increase liquidity on XRPL’s native decentralized exchange and broaden the range of use cases for developers, users, and businesses.

As part of the strategy, Ripple has appointed Jack McDonald as SVP of Stablecoins while continuing to serve as the CEO of Standard Custody. Before joining Ripple, McDonald’s worked for more than 30 years in investment banking, asset management, financial services, and fintech industries. He will play an important role in managing the stablecoin team and introducing their new stablecoin product to the market.

Ripple has acquired Standard Custody in the space, marking its second primary acquisition after purchasing Metaco in May 2023. Metaco is reportedly one of the leading providers of custody services, specializing in digital assets for institutional clients. 

These acquisitions demonstrate that digital currencies like stablecoins and central bank digital currencies, as well as real-world assets such as stocks, bonds, commodities, and real estate, continue to grow in importance. Ripple is legitimately interested in fostering the development of trust, utility, and liquidity in order to facilitate the broader adoption of these new assets and the tokenization of the economy.

Ripple has a clean balance and a non-risky financial record. Thus, it can afford to integrate more companies to bolster its position as a monarch in the realm of enterprise blockchain. Such licenses as the license for cross-border payments and the license for digital asset custody are necessary to meet client needs and follow the regulations. This approach is critical for ensuring that blockchain technology is adopted and utilized at the institutional level.

As Ripple continues to take root in the blockchain world, this accolade from Standard Custody & Trust Company is a step up. Through its commitment to the rules and regulations and purchasing approach, Ripple has created a solid platform and will become a leader in the rapidly developing digital assets market in the future.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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