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Ripple Secures NYDFS Licensing, Strengthens Enterprise Infrastructure

Ripple’s financial strength and strategic acquisitions are set to solidify its position as a leader in the digital asset industry, paving the way for future growth and innovation.


Ripple’s financial strength and strategic acquisitions are set to solidify its position as a leader in the digital asset industry, paving the way for future growth and innovation.
Credit: Foretoken Media 2024

NEW YORK – In a significant move to bolster its enterprise offerings, Ripple has completed the acquisition of Standard Custody & Trust Company, a licensed digital asset custodian, as confirmed in a statement on June 11. This acquisition marks a pivotal step for Ripple in expanding its regulatory footprint and enhancing its product suite.


Ripple Secures NYDFS Licensing


The acquisition, initially announced in February, was finalized after Ripple received the necessary regulatory approval. This strategic move brings a New York Department of Financial Services (NYDFS)-regulated trust company into Ripple’s portfolio, adding to the company’s growing list of licenses across several jurisdictions, including the United States and Singapore.


Ripple's CEO, Brad Garlinghouse, emphasized the importance of this acquisition, stating:


“The integration of Standard Custody & Trust Company solidifies our commitment to regulatory compliance and positions us to launch new financial products, including our planned stablecoin.”

Enhancing Product Offerings and Infrastructure


This acquisition is Ripple’s second-largest in the past year, following the purchase of Metaco, an institutional crypto custody platform, in May. These strategic moves highlight Ripple's dedication to expanding its services for institutional clients and reinforcing its enterprise infrastructure.


“Both moves underscore the growing breadth and importance of digital assets; from stablecoins and CBDCs to tokenized real-world assets (RWAs) like stocks, bonds, commodities, real estate, and more,” Ripple stated.

Ripple's Ambitious Plans for Stablecoins


Jack McDonald, the current CEO of Standard Custody, will continue in his role and also serve as Ripple’s Senior Vice President of Stablecoins. McDonald’s expertise will be pivotal as Ripple prepares to launch its USD-backed stablecoin, which will be available on both the XRP Ledger and Ethereum. Ripple stated:


“There is huge demand for stablecoins that deliver trust, stability, and utility [...] We will leverage our decade-plus of experience in building real-world financial solutions to meet this growing market demand.”


Despite the optimistic outlook, Ripple’s stablecoin plans have attracted scrutiny from the U.S. Securities and Exchange Commission (SEC), which has labeled the stablecoin as an unregistered crypto asset. Ripple remains committed to navigating these regulatory challenges as it continues to innovate and lead in the blockchain space.

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