Ripple Expands US Presence With Purchase of NY Crypto Trust Firm
Ripple has struck a deal to purchase New York trust company Standard Custody & Trust. Through the acquisition, the payment platform secured a limited purpose trust charter to expand the regulatory services it can offer clients in the US.
The acquisition represents Ripple’s latest move to expand its capabilities domestically, despite legal clashes with the SEC and its preference to target overseas markets.
Key Details:
- The purchase still requires approval from New York regulators.
- Would let Ripple offer custody, settlement, and tokenization services in-house.
- Follows an earlier Metaco acquisition to boost the custody offering.
Read more: Ledger Partners With Coinbase To Streamline Crypto Purchases
Ripple president Monica Long said obtaining the trust charter will equip Ripple to deliver additional blockchain infrastructure pieces to financial institutions beyond payments. These include services related to asset custody and settlement.
Ripple president calls it a long-term project
The additional capabilities could allow customers to maintain assets in custody with Ripple rather than relying on outside partners.
Long also mentioned that it is a long-term project and that the firm is trying to complete its U.S. money transmission licensing.
Though much of Ripple’s focus falls outside the U.S., given its high-profile legal battle with domestic regulators, the company still aims to solidify its positioning in the U.S.
Read more: Founders Fund Bets $200 Million On Bitcoin And Ethereum: Report
Long categorized the U.S. as a major market that Ripple still views as an innovation leader globally. However, she cited the lack of regulatory clarity around digital assets as a hesitation for the company’s domestic growth.
Ripple remains locked in a court battle with the SEC over allegations that XRP transactions violated securities laws.
The Standard Custody purchase marks Ripple’s second crypto-centric acquisition of a custody provider in under a year, coming after it snapped up Switzerland’s Metaco.
