On June 11, Ripple Labs announced the acquisition of Standard Custody, a digital asset custodian. The deal, which was first announced earlier this year, is central to Ripple’s planned rollout of a US dollar stablecoin and broader goals of tokenizing real-world assets. .
As part of the deal, Jack McDonald, CEO of Standard Custody, will be named Senior Vice President of Ripple Stablecoins, while remaining CEO of Standard Custody.
Ripple highlighted the Standard Custody license as a key benefit for a digital asset custodian, highlighting the regulatory approval of Standard Custody by the New York Department of Financial Services (NYDFS) – one of the most strict when it comes to digital assets.
The acquisition of Standard Custody follows Ripple’s 2023 acquisition of Metaco, another digital asset custodian, for $250 million. Ripple’s purchase of Metaco was underlined by the belief that the institutional crypto custody industry will reach $10 trillion by 2030, as banks increasingly look to offer custody services. digital assets to their customers.
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In the custodial space, there is the emergence of tokenization of real-world assets – a market that could grow to over $800 trillion if all of the world’s fixed assets were tokenized, according to Chainlink.
Tokenization of real-world assets has become a major goal for companies like Ripple Labs, Chainlink, and Algorand; The emerging tokenization market is widely considered the next great frontier for cryptocurrencies, blockchain and digital assets.
In May, the Depository Trust and Clearing Corporation (DTCC) released its report on a real-world asset tokenization pilot between DTCC and several major banks, including JP Morgan, Edward Jones and BNY Mellon, which leveraged the protocol CCIP proprietary interoperability system. With chain link. .
The goal of the experiment was to test the box’s data encoding and simulate the introduction of real-world data into the chain. According to the DTCC report, several benefits of blockchain tokenization have been identified, including automated data management and reduced need for record keeping, transparent real-world APIs for customers, and the ability to create “management data dynamics throughout the network lifecycle. Origin.”
Ultimately, the pilot provided insight into potential future applications for banks and other institutional operators looking to leverage blockchain tokenization in their products and services, such as brokerage applications or automated data feeds.
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