Breaking: Ripple Acquires Metaco for $250M

American blockchain payments firm Ripple Labs Inc has acquired Swiss crypto firm Metaco for $250 million to expand its reach
By Godfrey Benjamin
May 17, 2023 Updated May 17, 2023
bons
bons

Here comes a win in the bag for payment company Ripple Labs Inc which just acquired Switzerland-based crypto custody provider Metaco in a $250 million deal. According to a Ripple spokesperson, the acquisition was completed via a combination of Ripple equity and cash. Notably, this acquisition makes Ripple the sole shareholder of the Swiss crypto custodian.

With Metaco’s technology which facilitates storage and management of crypto assets, Ripple would be expanding its offerings to include custody, issue and settlement of tokenized assets for institutional investors. Many firms including Citi, BNP Paribas, and Societe Generale’s digital asset arm have been able to move to new business models through the services offered by Metaco. 

advertisement

Ripple is bound to experience new opportunities once it diversifies into crypto custody. It is no longer news that investors have become more cautious to make crypto investments following the tumult faced in 2022 which was contributed by the implosion of several cryptocurrency exchanges including the collapse and bankruptcy filing of FTX. 

These investors are now more concerned about where and how their crypto assets are stored. Brad Garlinghouse, Ripple’s Chief Executive Officer (CEO) believes that there would now be an increased demand for crypto custody amongst institutional investors. 

“By focusing on the infrastructure … you’re not really subject to the same gyrations of the crypto winters,” he added “If ultimately you’re solving a clear problem at scale for these customers, there’s going to be demand there.”

Ripple Looks Forward to Final Verdict in SEC Case

It is however worth noting that this acquisition comes at a crucial time when the United States regulators are cracking down on crypto firms. The Securities and Exchange Commission (SEC) still has an ongoing lawsuit with Ripple for offering XRP for sale. 

According to the regulator, XRP is an unregistered security, a claimed that is consistently debunked by Ripple and legal experts.

The lawsuit has been ongoing for more than two years and Garlinghouse has disclosed that in the end, Ripple’s defence cost against SEC would be around $200 million. Ripple is hopeful that the case would end soon and the victory would be in its favour.

“The silver lining for Ripple is that we are kind of at the end. Sometime in the six months, I expect a resolution (in the XRP lawsuit),” Garlinghouse said while speaking at the recently held Dubai Fintech Summit.

As a comforting sign, Ripple scored a recent winning as Judge Torres ordered that the Hinman emails cannot be sealed as demanded by the SEC.

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Next Story