In a move that definitely expands the company's options in the US, Ripple Labs has acquired New York-based cryptocurrency trust company Standard Custody and Trust. This development will improve the company's regulatory status and allow it to expand in the United States.
The development could also be a step toward the company moving beyond just its current payments service. The company announced the acquisition amid an ongoing high-profile legal battle with the U.S. Securities and Exchange Commission (SEC). This case is currently in the relief stage.
Also read: Ripple vs. SEC litigation: Settlement on the cards?
Ripple expands US options with acquisition of crypto trusts
During the last few months of 2023, the situation surrounding Ripple (XRP) was very optimistic. In fact, that expectation continues until 2024, with many predicting an end to the ongoing litigation. Although the conflict with the SEC is still ongoing, the company is aiming to rejoin the US market.
Specifically, Ripple announced on Tuesday that it has acquired New York-based cryptocurrency trust company Standard Custody and Trust Inc. to expand its options in the United States. This transaction is the company's second acquisition of a custody business. Additionally, the deal requires regulatory approval in New York.
Also read: Ripple (XRP) trading volume increases by nearly 70% as price could follow
Ripple's acquisition of a New York-based limited purpose trust charter will expand what Ripple can offer. Specifically, we are now able to offer more in-house services to financial institutions interested in tokenized assets. The move is an effort to expand Ripple's transactions beyond just a payment network.
“We want to offer more of these pieces of infrastructure to financial institutions,” Ripple President Monica Long told CoinDesk. “We think this gives us a lot of flexibility.”
This transaction is part of a long-term plan implemented by Ripple. Additionally, they are simultaneously aiming to complete their US remittance license. Terms of the deal have not yet been shared, but it will allow Ripple to add both crypto custody and payments businesses to its services. Therefore, customers can rely on Ripple for storage. No need to use another company.
