Ripple (XRP) Completes Acquisition of Standard Custody, Appoints Jack McDonald to Lead Stablecoins
Rongchai Wang Jun 11, 2024 10:39
Ripple (XRP) finalizes Standard Custody acquisition, appoints Jack McDonald as SVP of Stablecoins, enhancing its financial infrastructure.
Ripple (XRP) Finalizes Acquisition of Standard Custody
Ripple, a prominent player in the blockchain and digital assets space, has completed its acquisition of Standard Custody & Trust Company. Standard Custody is an enterprise-grade regulated custodian for digital assets. This acquisition, announced earlier this year, has received the necessary regulatory approvals, marking a significant milestone for Ripple's strategy to enhance its product offerings and explore new ventures such as stablecoins.
Regulatory Compliance and Licensing
The closing of this acquisition adds a limited purpose trust company regulated by the New York Department of Financial Services to Ripple’s already extensive license portfolio. Ripple holds nearly 40 money transmitter licenses across the United States, along with a Major Payment Institution License from the Monetary Authority of Singapore and a Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland. This move is expected to bolster Ripple's enterprise infrastructure solutions, enabling better service to institutional customers in tokenizing, storing, moving, and exchanging value.
Introduction of USD-Backed Stablecoin
In conjunction with the acquisition, Ripple has announced plans to launch a USD-backed stablecoin. This initiative aims to bridge the gap between blockchain and traditional finance, addressing the growing demand for stablecoins that offer trust, stability, and utility. Ripple plans to leverage its extensive experience in building financial solutions for global institutions to capture this expanding market. The stablecoin will be issued on the XRP Ledger, enhancing liquidity on XRPL's native decentralized exchange and supporting diverse financial use cases for developers, users, and businesses.
Jack McDonald Appointed as SVP of Stablecoins
To lead the stablecoin initiative, Ripple has appointed Jack McDonald as Senior Vice President of Stablecoins. McDonald will maintain his current role as CEO of Standard Custody. With over three decades of experience in investment banking, asset management, financial services, fintech, and digital assets, McDonald brings a wealth of expertise to Ripple’s stablecoin team.
Strategic Acquisitions and Future Plans
Standard Custody is Ripple's second major acquisition in the past year, following the acquisition of Metaco in May 2023. Metaco is a leading provider of institutional digital asset custody solutions. These strategic moves highlight the growing importance of digital assets, including stablecoins, central bank digital currencies (CBDCs), and tokenized real-world assets such as stocks, bonds, commodities, and real estate. Ripple aims to build trust, utility, and liquidity to unlock access to these new asset classes and the broader token economy.
Ripple intends to leverage its strong financial position to pursue further acquisitions and cement its leadership in the enterprise blockchain space. By securing the necessary licenses and focusing on regulatory compliance, Ripple is paving the way for wider institutional adoption of blockchain technology, from cross-border payments to digital asset custody and beyond.
For more information, visit the official Ripple website.
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