Ripple has finalized its acquisition of Standard Custody & Trust Company, a licensed digital asset custodian, as confirmed in a statement on June 11. The acquisition, initially announced in February, was completed after obtaining regulatory approval.

With this acquisition, Ripple adds a New York Department of Financial Services (NYDFS)-regulated trust company to its portfolio, expanding its licensing footprint in the US and Singapore. This move is expected to enhance Ripple's product offerings, including its upcoming stablecoin initiative, and strengthen its enterprise infrastructure for institutional clients.

This acquisition marks Ripple's second largest in the past year, following its acquisition of Metaco, another institutional crypto custody platform, in May last year. Ripple emphasized the strategic importance of these acquisitions in the digital assets space, encompassing stablecoins, CBDCs, and tokenized real-world assets (RWAs) like stocks and commodities.

Jack McDonald, CEO of Standard Custody, will also assume the role of Senior Vice President of Stablecoins at Ripple, leveraging his expertise to lead the stablecoin team and launch Ripple's USD-backed stablecoin. This initiative aims to meet the increasing market demand for stablecoins that offer trust, stability, and utility.

Ripple plans to launch its stablecoin on the XRP Ledger and Ethereum, though it faces regulatory scrutiny from the US SEC, which has raised concerns about its classification as an unregistered crypto asset.