Blockchain technology firm Ripple has completed the acquisition of the New York-based Standard Custody and Trust Company and appointed the firm's CEO as Senior Vice President of Stablecoins. This acquisition has reportedly received all the necessary regulatory approvals, marking a milestone in the efforts to strengthen Ripple's enterprise infrastructure.

Entry into Stablecoin Market

According to Ripple, this acquisition includes a limited-purpose trust company regulated by the New York Department of Financial Services. It adds to Ripple's portfolio of nearly 40 US money transmitter licenses, a Major Payment Institution License from Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland.

Following the acquisition, Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Read this Term announced plans to launch a USD-backed stablecoin to bridge the gap between blockchain and traditional finance. Due to their stability and utility, stablecoins are in demand, and Ripple has the opportunity to leverage its experience in building financial solutions for global institutions.

The stablecoin, set to be issued on the XRP Ledger, aims to enhance liquidity on XRPL's native decentralized exchange and support various financial use cases for developers, users, and businesses. To lead its stablecoin initiatives, Ripple has appointed Jack McDonald as Senior Vice President of Stablecoins. McDonald, who will also continue his role as CEO of Standard Custody, brings over three decades of experience in investment banking, asset management, and fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term.

Institutional Adoption

The acquisition of Standard Custody followed Ripple's purchase of Metaco in May 2023, further expanding its digital asset custody solutions. Speaking about the planned acquisition early this year, Jack McDonald, the CEO of Standard Custody, underscored the company's commitment to providing financial institutions with the platform to safeguard their digital assets.

McDonald expressed optimism about collaborating with Ripple, citing the blockchain firm's crypto expertise, relationships with financial institutions, and product offerings in payments and custody solutions.

In April, the trial between Ripple and the SEC over allegations of illegal cryptocurrency sales resumed. In the legal battle, the regulator accused Ripple Labs of offering unregistered securities in December 2020. Ripple's defense is based on the argument that its native cryptocurrency, XRP, should not be classified as a security.