Ripple Labs completes deal to acquire Standard Custody, preparing for upcoming stablecoin

As part of the deal, Standard Custody CEO Jack McDonald will be appointed Ripple's senior vice president of stablecoins while remaining CEO of Standard Custody.

The acquisition of Standard Custody follows Ripple's acquisition of Metaco, another digital asset custodian, for $250 million in 2023. News that the institutional crypto custody industry will reach $10K billion by 2030 as banks increasingly look to provide digital asset custody services to their customers.

Real asset tokenization (RWA) has become a major focus for companies like Ripple Labs, Chainlink, and Algorand

In May, the Securities Depository and Clearing Corporation (DTCC) published a report on a real asset tokenization pilot program conducted between DTCC and several major banks, including JP Morgan, Edward Jones and BNY Mellon.

The purpose of the experiment is to test the encryption of treasury data and simulate the posting of real data on-chain. According to the DTCC report, several benefits of blockchain encryption have been identified, including automated data management and reduced need for record keeping, practically transparent APIs for customers, and the ability to create “dynamic data management throughout the lifecycle of an asset.”

Ultimately, the pilot program provided insight into potential future applications for banks and other institutional operators looking to leverage blockchain encryption in products and services. their own, such as a brokerage application or an automated data source.