Ripple has finalized its acquisition of Standard Custody & Trust Company, a licensed digital asset custodian, as confirmed in a statement released on June 11. This acquisition, initially announced in February, received regulatory approval, marking Ripple's expansion into the digital asset custodial space.

With this acquisition, Ripple gains access to a New York Department of Financial Services (NYDFS)-regulated trust company, adding to its collection of licenses obtained globally, notably in the US and Singapore. The move is poised to enhance Ripple's product lineup, particularly supporting the launch of its planned stablecoin, and fortify its infrastructure for institutional clients.

This strategic move represents Ripple's second-largest acquisition in the past year, following its purchase of Metaco, another institutional crypto custody platform, in May of the previous year. Ripple intends to leverage its financial strength to pursue further acquisitions, consolidating its position as a leader in the blockchain industry.

Additionally, Jack McDonald, the CEO of Standard Custody, assumes the role of Senior Vice President of Stablecoins within Ripple. McDonald's extensive experience will be instrumental in leading Ripple's stablecoin team and navigating the stablecoin market's burgeoning demand for trust, stability, and utility.

The planned launch of a USD-backed stablecoin by Ripple reflects the increasing market demand for such digital assets. The stablecoin is slated to be deployed on both the XRP Ledger and Ethereum platforms. However, regulatory scrutiny from the US Securities and Exchange Commission (SEC) looms over this initiative, with the SEC raising concerns about its status as an unregistered crypto asset.