In a recent update, Ripple sheds light on its strategic vision following the acquisition of Standard Custody & Trust Company last month. Ripple President Monica Long delves into the reasons behind the acquisition and the broader objective of expanding its subsidiaries.
Strategic Acquisition for Regulatory Strength
The acquisition of Standard Custody marked a significant step for Ripple, bringing its total money transmitter licenses in the US to nearly 40. It holds Virtual Asset Service Provider registration with the Irish central bank and a Major Payment Institution License from the Monetary Authority of Singapore (MAS).
Monica Long emphasizes that the strategic effort to accumulate licenses across the US and globally is crucial, especially in the current regulatory landscape where blockchain firms face increased scrutiny. Ripple aims to distinguish itself by maintaining a robust portfolio of licenses, positioning it favorably in the market.
Expanding Licensing Portfolio for Market Differentiation
According to Long, the acquisition is part of Ripple’s broader strategy to expand its licensing portfolio and make strategic acquisitions. This approach enables Ripple to utilize its strong financial position to broaden product offerings, support new initiatives on the product roadmap, and cater to a more extensive customer base.
Despite Ripple’s global operations and partnerships spanning Asia, Africa, Europe, and Latin America, Long highlights the company’s ongoing commitment to expanding operations in its home country, the United States.
Unlocking Financial Services Potential with Standard Custody
With Standard Custody holding a limited-purpose trust charter in New York, Ripple gains the ability to offer targeted financial services to institutions. This includes expanding tokenization efforts, a trajectory that Ripple has actively pursued in collaborations with Metaco and HSBC.
Long emphasizes the desire to provide essential infrastructure pieces to financial institutions, enhancing Ripple’s flexibility and solidifying its role in shaping the financial landscape.
Ripple’s Commitment to Compliance and Customer Demand
In its recent post, Ripple underscores the importance of the Standard Custody acquisition in the context of compliance. With Standard Custody being a licensed and regulated custodian, it stands as a testament to Ripple’s dedication to regulatory adherence.
The acquisition not only strengthens Ripple’s compliance posture but also enhances its product offerings in response to growing customer demand. With Standard Custody’s solutions, Ripple is better equipped to develop institutional products that facilitate the tokenization of assets, on-chain storage, seamless movement, and instant value exchange.
TrustLicense and Ongoing Global Pursuits
Ripple positions itself as one of the few crypto companies holding a TrustLicense, emphasizing the ongoing pursuit of licenses in various countries and regions. The Standard Custody acquisition aligns with Ripple’s strategy to obtain licenses in locations such as Singapore, the UK, and Europe, reinforcing its commitment to regulatory compliance on a global scale.