Ripple Acquires Crypto Custody Firm Metaco For $250M• May 17, 2023 2:24 pm • Comments
It has just been announced that Ripple has acquired the crypto custody provider Metaco for roughly $250 million which makes it one of the company’s biggest acquisitions.
With this acquisition, Ripple will be able to enter the crypto custody and settlement space which makes the XRP ecosystem extremely attractive.
The company has shared that this will bring new revenue opportunities which is seen as essential since the current regulatory environment in the US is uncertain.
The deal was completed with a combination of both cash and Ripple equity and it is expected that this will eventually allow XRP investors to have access to custody services as well.
This space is becoming increasingly in demand as large financial institutions are looking for options to safely store large amounts of digital assets.
Today, we are proud to announce Ripple has acquired @metaco_sa, becoming the sole shareholder of the Swiss-based provider of digital asset custody and tokenization technology.
Learn more: https://t.co/GrI3u13iDT
— Ripple (@Ripple) May 17, 2023
The purchase will allow Ripple to expand its offerings by incorporating the technology to custody, issue, and settle tokenized assets.
Metaco offers customers crucial and secure custody infrastructure, allowing institutions to scale new business models in the crypto economy.
Diversifying into custody solutions will bring new revenue opportunities, Ripple said, adding that the acquisition is part of its strategy to broaden its presence beyond the U.S and its uncertain regulatory landscape.
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive branch and a truly unmatched customer track record,” said Brad Garlinghouse, CEO of Ripple.
Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent business unit led by its founder and CEO Adrien Treccani.
Metaco will bring a lot of benefits to Ripple given that it already has a large client base of different banks and crypto exchanges that it provides custody services for.
Ripple is predicting that the crypto custody market will be a $10 trillion market by 2030 and is aiming to take advantage of this trend.
Metaco also operates in many regions of the world which fits Ripple’s agenda as it looks to diversify its business operations.
This is due to the ongoing lawsuit that it has against the SEC which has been an obstacle to a lot of growth within the US region.
Garlinghouse has indicated that he believes that the crypto winter will soon end and Ripple’s continued growth with this new acquisition shows that it is in a good position to take advantage in the next boom.
— CoinDesk (@CoinDesk) May 17, 2023
Ripple CEO Brad Garlinghouse said both firms already share common goals in developing enterprise utility, adherence to regulatory compliance, and a global mindset. With that, he is confident that the pairing can deliver “the best possible experience” for corporate clients.
Signing off the thread, Garlinghouse alluded to the imminent end of crypto winter, adding that Ripple is now well-placed to achieve its long-term vision.
“Every day we’re thinking about the long-term opportunity of crypto utility, putting our money/minds behind that mission, and partnering with folks who share that vision.“
Metaco founder and CEO Adrien Treccani said the deal would allow the company to leverage Ripple’s “scale and market strength,” – enabling it to serve its clients better.
“We look forward to continuing to serve unprecedented levels of institutional demand with the utmost excellence in delivery, as our clients have come to expect.”
— EDO FARINA 🅧 XRP (@edward_farina) May 17, 2023
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