Ripple obtains a NYDFS license after buying the Standard Custody custodian

The deal comes as Ripple prepares to launch its own stablecoin

11.06.2024 - 12:15

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4 min

What’s new? Fintech company Ripple, which developed the payment protocol of the same name and XRP token, has announced that it has successfully closed the purchase of regulated institutional digital asset custodian Standard Custody. As a result of the acquisition, Ripple also received a New York State Department of Financial Services (NYDFS) license in addition to its existing money transfer licenses in 40 US states, a Major Payment Institution (MPI) license from the Central Bank of Singapore, and a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland.

Press release

What else is known? The deal’s closing follows immediately after Ripple’s announcement of plans to launch a US dollar-pegged stablecoin that aims to bridge the gap between the crypto market and the traditional financial services sector. The company emphasized that stablecoins are in huge demand.

USDT accounted for 69% of the inflow of funds into the stablecoin sector over the past 90 days

Overall, stablecoins have raised $16,23 billion since March

Ripple’s stablecoin will be issued on the company’s own blockchain, XRP Ledger (XRPL), which will provide high liquidity for its native decentralized exchange (DEX) and “support more financial use cases on the Ledger for developers, users and businesses alike.”

To support enterprise customers around the world, Ripple will use the stablecoin in its payment solution alongside XRP, which currently ranks eighth in the overall cryptocurrency ranking by market capitalization with a figure of over $27 billion.

Ripple CEO denies accusations of attacks on Tether

Earlier, Brad Garlinghouse claimed apparent harassment of the company by the US authorities

The company also announced the appointment of Standard Custody CEO Jack McDonald as Ripple’s vice president of stablecoins, while he will also retain his current position. McDonald has more than 30 years of experience working at banks and investment firms, as well as fintech and crypto companies. Ripple said his knowledge and expertise will help bring the new stablecoin to market.

Standard Custody is Ripple’s second major acquisition after buying institutional crypto custodian Metaco in May 2023. The company said the moves underscore the growing importance of digital assets, including stablecoins, central bank digital currencies (CBDCs), and real-world tokenized assets (RWAs).

Ripple and its subsidiary custodian Metaco have won the FinTech Breakthrough Award

They have named the best cross-border payment and DeFi infrastructure platforms

“Market participants require trust, utility, and liquidity in order to unlock access to these new asset classes and the broader token economy, and Ripple is committed to accelerating that growth,” the company concluded.

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