Ripple, a global payments network operator, made an announcement on Tuesday stating its intention to acquire Standard Custody & Trust Co., a provider of crypto custody and settlement services.
This move by Ripple is part of its strategic plan to obtain a trust charter in New York, which would enhance its adherence to regulatory requirements in the United States.
Ripple is currently embroiled in a legal dispute with the US Securities and Exchange Commission (SEC) regarding the classification of its native cryptocurrency, XRP. Nevertheless, Ripple remains committed to expanding its operations in the United States.
Ripple’s Vision
Ripple has outlined its expansion plans to extend its scope beyond its primary function of facilitating international money transfers. Monica Long, the President of Ripple, expressed the company’s ambition to offer comprehensive infrastructure solutions to financial institutions.
In addition, Ripple aims to secure additional money transmission licenses in the United States to bolster its future acquisition endeavors. Through the acquisition of Standard Custody & Trust, Ripple plans to establish a new division specializing in crypto custody and settlement, pending approval from the New York Department of Financial Services.
Promoting Faster Transactions
By eliminating third-party interventions for external custodial services, this collaboration will allow customers to directly track their assets via Ripple’s platform. In the United States, Ripple’s primary obstacle lies in the absence of well-defined regulations for digital assets, but not legal complications.
By obtaining a trust charter, Ripple intends to surmount this obstacle and expand its operations within the United States. Also, the company will be able to offer additional in-house services to its clientele, particularly those interested in asset tokenization.
