Ripple isn’t letting its legal tussle with the U.S. Securities and Exchange Commission (SEC) dampen its ambitions within the United States. Despite the ongoing high-profile lawsuit—where Ripple has so far largely prevailed against the regulator’s claims—the company is actively seeking to broaden its offerings in the U.S. market.
With the acquisition of a New York-based company holding a limited purpose trust charter, Ripple is positioning itself to provide a wider range of in-house services, especially targeting financial institutions interested in asset tokenization.
In a conversation with CoinDesk, Ripple President Monica Long detailed the company’s strategy to diversify beyond its established payments network. “We’re aiming to build out more infrastructure components for financial institutions,” Long stated, highlighting the move as part of Ripple’s long-term vision to harness blockchain technology for a variety of financial products.
The acquisition, still pending approval from the New York Department of Financial Services, would incorporate a crypto custody and settlement business into Ripple’s offerings. This strategic move allows Ripple’s customers the convenience of maintaining custody of their assets directly with Ripple, eliminating the need for third-party partners.
Ripple’s legal skirmish with the SEC, centered around allegations that XRP is a security, has been a significant storyline within the U.S. However, Long emphasized that the company’s cautious stance towards U.S. expansion is less about the lawsuit and more about the broader regulatory uncertainties surrounding digital assets. Despite these challenges, Ripple sees potential for the U.S. to lead in fostering blockchain innovation.
This is not Ripple’s first foray into enhancing its service portfolio through acquisitions. The company previously acquired Metaco, another cryptocurrency custody firm, signaling Ripple’s ongoing commitment to expanding its blockchain-based solutions and reinforcing its presence in the U.S. financial landscape amidst regulatory hurdles.
