On Wednesday, Ripple, a blockchain firm, announced its acquisition of Metaco, a Swiss-based crypto custody provider, for a substantial amount of $250 million.
With this strategic move, the firm aims to enhance its services by integrating Metaco’s technology for safekeeping, issuing, and settling tokenized assets. Metaco’s reliable custody infrastructure is of utmost importance to customers, enabling institutions to expand their business models within the crypto economy.
Ripple anticipates that venturing into custody solutions will unlock fresh avenues for generating revenue. Furthermore, this acquisition aligns with Ripple’s broader strategy of extending its global reach beyond the United States and navigating the uncertainties presented by regulatory frameworks.
A combination of cash and Ripple equity financed the acquisition, as stated by a company spokesperson.
Brad Garlinghouse, the CEO of Ripple, expressed that Metaco, with its outstanding executive branch and unparalleled customer track record, is a proven leader in institutional digital asset custody.
Ripple’s Ongoing Battle With the SEC
The U.S. Securities and Exchange Commission filed a lawsuit against Ripple and its executives in 2020. The agency accused them of selling around $1.3 billion worth of XRP tokens without proper registration. Ripple CEO recently predicted that the legal dispute would incur a cost of approximately $200 million for the company.
Additionally, he advised crypto entrepreneurs to be cautious about setting up their businesses in the United States. On Tuesday, the judge presiding over the Ripple lawsuit stated that the regulator could not seal documents related to a speech on crypto and securities given by former official William Hinman in 2018.
Ripple is a blockchain technology company known for its digital payment protocol and cryptocurrency, XRP. It aims to enable fast, low-cost international money transfers and improve liquidity for financial institutions.
Ripple’s platform facilitates secure and efficient cross-border transactions, making it a prominent player in the fintech industry.
Metaco is a renowned leader in the realm of institutional digital asset custody. Boasting an exceptional executive branch and an unmatched track record in customer service, Metaco has earned its prominent position in the industry.
Metaco’s expertise lies in providing secure and reliable solutions for the storage and management of digital assets, catering to the needs of institutional clients. Its continued success and dedication to excellence have solidified its reputation as a trusted custodian in the ever-evolving digital asset landscape.
With Ripple assuming the role of the sole shareholder, Metaco remains an independent business unit under the adept leadership of its founder and CEO, Adrien Treccani.