Ripple has broadened its scope in the custody scene with the recent acquisition of Standard Custody, a subsidiary of blockchain infrastructure company PolySign.

In a press release last night, the Ripple team announced the latest acquisition, which builds upon a series of recent achievements for the company. According to a subsequent post on X, the firm emphasized that the acquisition would help strengthen its product offerings.

Standard Custody and Trust Company offers regulated services to its clientele bordering on custody and escrow infrastructure with regulatory approval from the New York State Department of Financial Services (DFS).

Being a regulated entity, the Ripple acquisition of Standard Custody is currently pending approval from the DFS. Amid the wait, the firm has failed to disclose elaborate terms of the agreement.

However, a spokesperson from Ripple revealed that the firm would become Standard Custody’s sole shareholder following the approval. Ripple stands to gain significantly from the company’s strong regulatory compliance, aligning with its ongoing strategy to expand its portfolio of licenses.

An Expansion of Regulatory Licenses

Ripple confirmed this in the press release, emphasizing that the acquisition of Standard Custody was partly triggered by the desire to broaden its global licensing portfolio. As part of this sustained campaign, Ripple secured a Virtual Asset Service Provider (VASP) license in Ireland last December.

In addition, the company’s Singaporean subsidiary procured a full Major Payment Institution (MPI) license from Singapore’s apex bank in October 2023. The firm now holds almost 40 licenses as a money transmitter in multiple states in the U.S., with most of these licenses secured last year.

The previous year was dominated by infrastructure, and regulatory expansion moves from Ripple despite the sustained legal tussle with the U.S. SEC and the prevalent broader market uncertainties. The firm made a similar acquisition last September when it purchased Fortress Blockchain Technologies, essentially obtaining its license.

Monica Long, President of Ripple, spoke on the latest acquisition, emphasizing that the development could help the firm strengthen its infrastructure products in the crypto scene amid prevailing market realities. Long reaffirmed Ripple’s dedication to extend its service to a broader spectrum of clients.

Ripple Extends Its Reach in Custody

The Ripple President categorized the move as a smart acquisition, and there is little room for argument. Notably, besides the licensing advantage of the acquisition, the move also helps Ripple further solidify its footing in the custody scene, an industry it is slowly looking to dominate.

The move, which would help Ripple include custody provision to its infrastructure products, could provide a better avenue for Ripple’s clients to leverage custody solutions from the firm and not from an external entity.

The Standard Custody acquisition comes nine months after Ripple sealed a deal to acquire leading institutional custody solution provider Metaco. Since then, Metaco has continued to expand its reach, forming partnerships with British multinational bank HSBC and crypto custody provider Zodia Custody.

Metaco also partnered with leading Swiss bank BBVA last November. Interestingly, Ripple CTO David Schwartz revealed last month that the growing expansion into custody is part of the firm’s plans to present a “one-stop shop” for institutional crypto solutions.

Following the recent acquisition of Standard Custody, the community has questioned what this development means for shareholders of PolySign, Standard Custody’s parent company.

Recall that PolySign was meant to be up for a foreclosure sale on Jan. 5 due to a loan default. However, there were no reports of the sale on that day, leading some to speculate it never happened. Nonetheless, this remains unconfirmed.