- Ripple has acquired Standard Custody & Trust Co., bolstering its expansion within the US
- The acquisition represents the second crypto custodian in Ripple’s stable
- Ripple abandoned a move for Fortress Trust last year
Ripple has announced its acquisition of New York-based crypto custody provider Standard Custody & Trust Co. as part of its strategy to obtain a New York trust charter. The move, announced yesterday, sees the company further its expansion into unfriendly waters of US regulatory compliance. Monica Long, President of Ripple, expressed the company’s ambition to broaden its service offerings to financial institutions, emphasizing the importance of flexibility in their long-term objectives.
Replacement for Fortress Trust?
Ripple may have grabbed the headlines in recent months over its ongoing legal dispute with the US Securities and Exchange Commission (SEC), but it has been expanding its operations both domestically and internationally.
In May 2023 it bought Switzerland-based custodian Metaco for $250 million, which it tried to follow up with an acquisition of Fortress Trust later in the year. However, this deal fell through after it was revealed that the company had suffered a $15 million loss before the deal, although this was not cited as a reason for Ripple pulling out.
We are pleased to announce that we have entered an agreement to be acquired by @Ripple. Looking forward to this next chapter, focusing on what we do best – building enterprise-grade solutions for our customers. Learn more: https://t.co/KySdqUH2Ma
— Standard Custody (@StandardCustody) February 13, 2024
Ripple Expansion Continues
The acquisition of Standard Custody & Trust, pending approval from the New York Department of Financial Services, Represents Ripple’s second bite at a US custodian cherry, bolstering its portfolio with settlement business as well as custody services. This addition allows customers to centralize custody with Ripple, streamlining their operations without relying on external partners.
In an interview with CoinDesk, Ripple President Monica Long Long articulated the company’s vision, stating that the company wants to “offer more and more of these infrastructure pieces to these financial institutions.” The move solidifies Ripple’s intent to diversify beyond its established payments network, venturing into various financial products leveraging blockchain technology.
