Ripple Acquires Palisade to Expand Crypto Custody Business

Ripple, a prominent crypto solutions provider, has announced the acquisition of Palisade, a crypto custody and wallet company. The strategic move is designed to broaden Ripple's suite of services tailored for institutional clients, signifying a major push into the burgeoning crypto custody market. According to a statement released on Monday, Ripple will integrate Palisade's wallet-as-a-service (WaaS) offering into Ripple Custody, its dedicated crypto custody arm targeting banks and larger financial institutions. The acquisition's primary objective is to cater to a wider range of entities, including fintech startups, crypto-native companies, and established corporations. "Corporations are poised to drive the next wave of crypto adoption," stated Monica Long, President of Ripple. "Just as we've witnessed major banks transitioning from observers to active participants in the crypto space, corporations are now entering the market, requiring trusted, licensed partners equipped with readily deployable solutions." This acquisition marks another significant move for Ripple, which has been actively expanding its services following the resolution of its legal dispute with the Securities and Exchange Commission (SEC). The company has diversified its portfolio to include trading, stablecoins, and crypto treasury management.

Palisade's Integration to Enhance Key Ripple Services

Ripple intends to integrate Palisade's wallet solutions into Ripple Payments, its cross-border payments service. This integration will provide the underlying infrastructure for subscription-based payments and enhanced collection capabilities. The integration aims to provide solutions for clients engaged in high-velocity use cases, such as cryptocurrency-to-fiat on- and off-ramps. These solutions will support multiple blockchains and facilitate interaction with decentralized finance (DeFi) protocols.

Ripple's Acquisition Spree

Ripple's acquisition of Palisade brings its total investment in crypto company acquisitions to approximately $4 billion, with the majority of these deals finalized in the current year. Earlier on Monday, Ripple announced that its U.S. institutional clients would gain access to over-the-counter (OTC) trading of various cryptocurrencies through its $1.25 billion acquisition of Hidden Road, a crypto-friendly prime broker, finalized in April. This follows Ripple's October acquisition of GTreasury, a crypto treasury management system provider, for $1 billion, capitalizing on the growing trend of publicly traded companies holding cryptocurrency on their balance sheets. In August, Ripple also acquired stablecoin payments platform Rail for $200 million, with the deal expected to close in the fourth quarter of the year. This demonstrates Ripple's commitment to expanding its presence across the crypto ecosystem.