Ripple has announced agreeing to acquire Standard Custody & Trust Company, a regulated platform tailored for digital assets at the enterprise level.
Per the disclosure, this move underscores Ripple’s dedication to regulatory compliance while fortifying its product lineup. The report noted that the surge in institutional adoption of crypto and blockchain stems from the availability of mature, secure, and compliant products.
On X, Ripple CEO Brad Garlinghouse expressed that adding Standard Custody enables Ripple to enhance current product offerings for customers and explore new products and use cases, all while maintaining full compliance.
With @StandardCustody, we’ll be able to improve existing product offerings for our customers, as well as explore new products and use cases, all in a fully compliant way.
To date, @Ripple has secured: ✅ nearly 40 U.S. money transmitter licenses, ✅ MPI license from MAS, and ✅… https://t.co/0BrAWjBmhM
— Brad Garlinghouse (@bgarlinghouse) February 13, 2024
Moreover, Garlinghouse highlighted that Ripple has secured nearly 40 money transmitter licenses throughout the U.S. Besides, the firm holds overseas licenses such as a Major Payment Institution License granted from Singapore and a Virtual Asset Service Provider registration accredited by the Central Bank of Ireland.
Meanwhile, the disclosure from Garlinghouse has ignited reactions within the XRP community. One XRP enthusiast named Mack expressed that Ripple’s move was insufficient, expressing concerns over XRP’s performance.
Specifically, Mack pointed out that action needs to be taken regarding XRP’s lingering poor performance. He highlighted that XRP has remained “too low” over the past five years. Moreover, he lamented that individuals are increasingly exiting the XRP market for other, better-performing cryptocurrencies.
Attorney Bill Morgan sought to pacify Mack by clarifying that Ripple currently leads in crypto payments and is rapidly emerging as a leader in crypto custody. He also claimed that Ripple may become a leader in tokenizing non-crypto assets requiring custody.
Come on Mack. They are the leaders in crypto payments and fast becoming leaders in crypto custody and will probably become leaders in tokenization of non-crypto assets which need to be held in custody. They are building up a framework of regulatory clarity for these activities by… https://t.co/CenIxV8fmh
— bill morgan (@Belisarius2020) February 13, 2024
Furthermore, Morgan emphasized that Ripple’s acquisition of money transmitter and custody licenses constructs a framework of regulatory clarity for these activities. He remarked that none of these developments can be negative for XRP.
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