Ripple has officially announced its acquisition of Standard Custody & Trust Company. This brings a new dimension to Ripple’s commitment to regulatory compliance, allowing the company to enhance its existing product offerings and explore complementary products.
Ripple is the company behind XRP, a payment settlement system, and currency exchange network that can process transactions globally. It was designed to be an alternative to SWIFT, a leading money transfer network. Ripple can facilitate exchanges for a variety of fiat currencies and cryptocurrencies and is used by large financial institutions.
XRP is the native crypto token of the Ripple network and is consistently among the top 10 cryptocurrencies by market capitalization. Ripple operates on an open-source and peer-to-peer decentralized platform that allows for a seamless transfer of money in any currency. It is a global payments network and counts major banks and financial services institutions among its customers.
Ripple’s XRP Ledger tracks IOUs in a specific currency for users and gateways. Ripple tackles global payment issues using a consensus algorithm that depends on trusted validators instead of mining.
The company holds a large portion of the pre-mined 100 billion XRP tokens in escrow, releasing a small amount periodically for network operations. XRP serves as a bridge currency, aiding the transfer of value between various fiat currencies for Ripple’s customers.
Acquiring Standard Custody reveals Ripple’s commitment to managing regulatory challenges in the cryptocurrency and blockchain industry. Despite facing a legal battle with the US Securities and Exchange Commission (SEC), the payment company has successfully flourished by extending its operations beyond the borders of the United States.
Monica Long, Ripple President, talked about progress, highlighting the company’s dedication to offering top-notch blockchain solutions for diverse financial uses. Long stated that by growing their licenses and making strategic acquisitions, Ripple is poised to seize market opportunities and enhance their crypto infrastructure. She added that the company’s strong financial position will support the expansion of products and new initiatives.
