Ripple announced that it has reached an agreement to acquire Standard Custody & Trust Company. The goal is to strengthen product offerings amid growing customer demand.
Also acquiring Standard storage aligns with its mission to further its commitment to regulatory compliance. Ultimately, the idea is to grow enterprise blockchain solutions.
Ripple said it is now suited to house institutional-grade solutions that support organizations in their efforts to tokenize, store, exchange and move value. Monica Long, Ripple’s president, said they will now continue to leverage their strong financial position to expand product offerings, serve a broader customer segment and support new initiatives they have placed on the roadmap.
Most importantly, the development is likely to advance Ripple’s portfolio of regulatory licenses by strengthening its presence in regions such as Britain, Singapore and Europe. Solutions that serve a broader customer base will now span multiple use cases.
Ripple continues its long-term initiatives to serve businesses around the world with crypto expertise. The company has nearly 40 money transmission licenses in the US. This is in addition to VASP registration with the Central Bank of Ireland and a major payment institution license from the Monetary Authority of Singapore.
Ripple’s move came at a time when customer demand was increasing. It also comes at a time when companies and institutions around the world are starting to lean into the blockchain sphere. Ripple is trying to become the market leader when it comes to enterprise blockchain solution providers, without having to compromise on its position for enterprise crypto adoption.
Ripple’s announcement has not contributed much to the trading value of XRP so far. The token is dancing around $0.6114 with a decline of 4.78% in the last 24 hours at the time of writing this article. However, it does paint a bullish picture, up 5.225 in the previous seven days and up 21.47% in the last 30 days.
Ripple previously supported the involvement of blockchain technology in the global payments sphere. It highlighted four key insights: real value, use cases, crypto issues, efficiency and sustainability.
Simply put, blockchain is the most desirable innovative solution for payment mechanisms across all regions. It brings cost efficiency, transparency and better financial inclusion. Some statistics indicate that blockchain is the right choice as the majority of users value transparency and speed, along with lower fees for international and domestic payments. Blockchain payments are likely to boost businesses as they shorten payment terms.
Use cases extend to cross-border and domestic transactions. What is still central is the environmental impact of using the technology. Only when efficiency and environmental sustainability go hand in hand will users be willing to make greater use of blockchain for payments.
That said, Ripple and Standard Custody & Trust Company will likely complete the acquisition process as quickly as possible. It will enable Ripple to grow its enterprise blockchain solutions.