Ripple, a prominent blockchain firm, has acquired Metaco, a Swiss crypto custody provider, in a deal worth $250M, as announced in a company statement on Wednesday. This purchase is set to strengthen Ripple’s foothold in the burgeoning world of cryptocurrency by integrating Metaco’s advanced technology for custodianship, issuance, and settlement of tokenized assets.
The acquisition will equip Ripple with Metaco’s essential and secure infrastructure for crypto custody, thereby facilitating institutions to effectively scale their operations within the growing crypto economy. The move will also diversify Ripple’s portfolio, paving the way for new revenue streams, according to the company’s statement. The acquisition is a significant part of Ripple’s strategy to broaden its global presence, particularly in regions outside the uncertain regulatory landscape of the United States.
This significant move comes on the heels of legal hurdles that Ripple faced in the past. In 2020, Ripple and some of its executives were embroiled in a lawsuit by the U.S. Securities and Exchange Commission (SEC) regarding the sale of XRP tokens without proper registration, amounting to roughly $1.3B. Brad Garlinghouse, Ripple’s CEO, estimated the legal expenses of the company related to the lawsuit at around $200M. Despite these challenges, Garlinghouse continues to remain optimistic about Ripple’s growth and the prospects of the crypto industry.
In praise of the new partnership, Garlinghouse stated, “Metaco is a proven leader in institutional digital asset custody with an exceptional executive branch and a truly unmatched customer track record.” Ripple is now set to become the sole shareholder of Metaco, which will maintain its independent operations under the leadership of its founder and CEO, Adrien Treccani.