Ripple Labs has successfully completed its acquisition of Standard Custody, a prominent digital asset custodian, on June 11. This acquisition, which was initially announced earlier this year, is a key component of Ripple’s strategy to introduce a United States dollar stablecoin and to expand its efforts in real-world asset tokenization.
As part of the agreement, Jack McDonald, the CEO of Standard Custody, will take on the role of senior vice president of stablecoins at Ripple while continuing to serve as the CEO of Standard Custody.
Ripple has emphasized the significance of Standard Custody’s licensing, particularly highlighting the company’s regulatory approval from the New York Department of Financial Services (NYDFS), known for its stringent oversight of digital assets.
This acquisition of Standard Custody follows Ripple’s previous purchase of Metaco, another digital asset custody firm, for $250 million in 2023. Ripple’s investment in Metaco was driven by the belief that the institutional crypto custody sector will grow to $10 trillion by 2030 as traditional banks increasingly offer digital asset custody services.
Real-world asset tokenization is a key focus for companies like Ripple Labs, Chainlink, and Algorand, with projections suggesting that this market could grow to over $800 trillion if all of the world’s capital assets are tokenized.
In a recent development, the Depository Trust and Clearing Corporation (DTCC) conducted a pilot program on real-world asset tokenization in collaboration with major banks like JP Morgan, Edward Jones, and BNY Mellon. This program utilized Chainlink’s CCIP interoperability protocol to tokenize fund data and explore the integration of real-world information on blockchain platforms.
The experiment highlighted several advantages of blockchain tokenization, including automated data management, reduced record-keeping requirements, transparent APIs for customers, and the ability to dynamically manage asset data throughout its life cycle.
Overall, the pilot program shed light on the potential applications of blockchain tokenization for banks and other institutional players, from brokerage services to automated data feeds, showcasing the transformative potential of this technology in the financial industry.
Magazine:
Female crypto founders share insights on pitching to male VCs