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Ripple disrupts the crypto market with a new project

Wed 14 Feb 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed ▪ Trading

Despite the legal challenges it’s facing, the crypto firm Ripple aims to expand its operational realm. In the latest news, the company is looking to enter the segment of crypto custody. However, the company still needs to obtain the green light from regulatory authorities.

Le logo de la firme crypto Ripple inscrit sur une sorte de réfrigérateur pour illustrer la conservation de cryptos, service dans lequel la société envisage de se lancer

The crypto firm Ripple in strategic diversification mode?

Ripple, the company behind XRP, currently the 6th most dynamic crypto in the market, appears to be taking strategic steps to diversify its offerings and to improve its regulatory status.

This is at least what is suggested by the recent announcement from Ripple’s CEO, Brad Garlinghouse, regarding the company’s expansion project into the realm of crypto custody. This represents a significant shift in focus from traditional payment services.

Ripple’s decision to venture into crypto custody comes in a context of regulatory challenges, specifically its ongoing legal battle with the Securities and Exchange Commission (SEC).

It seems that this case does not discourage the crypto company’s executives. They are actively seeking to get regulatory approval to acquire Standard Custody and Trust Company, a firm with expertise in digital asset services.

To diversify its crypto services in the US, Ripple considers acquiring Standard Custody and Trust Company

A policy favorable to its compliance?

By acquiring Standard Custody, the crypto company Ripple is actually aiming for a specific goal: to strengthen its regulatory licenses, including a highly-coveted New York State trust charter.

These licenses are critical for Ripple to offer a full range of crypto services to users, including the custody and settlement of digital assets. This would enable Ripple to provide financial institutions with end-to-end solutions throughout the crypto industry’s value chain, combining technology and compliance.

Monica Long, the General Manager of the crypto firm Ripple, has emphasized the significance of licenses in providing full-fledged blockchain solutions to financial institutions. According to her, Standard Custody’s established market position, with its pioneering New York trust charter obtained in May 2021, would bolster Ripple’s regulatory framework.

Therefore, the project to acquire this firm is part of Ripple’s broader strategy to establish its presence globally, which in the long term would enable the crypto company to overcome regulatory complexities. The big question now is whether Ripple will obtain the permissions it needs to achieve its goals.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.