Ripple has expanded its portfolio by acquiring Standard Custody & Trust Company, a digital asset custody provider based in the United States. Notably, Standard Custody already has existing connections with Ripple through its executives.
Operating under a charter granted by the New York State Department of Financial Services, Standard Custody & Trust Company is recognized as a qualified custodian under federal regulations. Ripple highlighted that the acquisition will bolster its regulatory compliance, adding to its existing licenses such as the New York BitLicense and nearly 40 money transmission licenses across various U.S. states.
Monica Long, Ripple's President, emphasized that this acquisition broadens their ability to serve customers in diverse ways, aligning with Ripple's vision to become a comprehensive solution for businesses seeking to tokenize, store, transfer, and exchange value.
Ripple's subsidiary, XRP II, has held the BitLicense as a limited purpose trust company since 2016. According to Ripple's Chief Technology Officer David Schwartz, XRP II serves as the legal entity owned by Ripple, similar to how Apple authorizes entities for Apple Pay operations.
The financial terms of the acquisition were not disclosed publicly. However, this move follows closely after the resignation of Metaco CEO Adrien Trecanni. Metaco, a Swiss-based blockchain custody firm, was acquired by Ripple in May for $250 million.
Standard Custody & Trust Company operates under PolySign, a digital asset infrastructure firm founded by Ripple co-founder Arthur Britto, who currently serves as PolySign's President. Britto, known for his low public profile, co-founded Ripple in 2012 and is believed to have co-designed the XRP Ledger protocol.
Despite legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) against Ripple and its executives, Ripple secured a significant legal victory when a judge ruled that XRP was not a security when sold to investors. However, the lawsuit against Ripple remains ongoing.
Ripple's recent acquisition of Standard Custody & Trust is subject to regulatory approval, adding to its licenses from the Monetary Authority of Singapore and the Central Bank of Ireland obtained in October and December respectively.
