Ripple Acquires Crypto Custody Provider Metaco For $250M As XRP Lawsuit Nears End-Game
Ripple has splashed $250 million on Swiss digital asset infrastructure provider Metaco. The move means Ripple is seeking an expansion into providing crypto custody services for institutional investors. The San Francisco-based blockchain firm intends to start giving clients tools to custody, issue, and settle tokenized assets.
Under the terms of the deal, Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent business led by its founder and CEO, Adrien Treccani.
Ripple Shells Out $250 Million For Metaco
Ripple today announced the acquisition of Metaco, financed through a combination of Ripple equity and cash.
Metaco offers digital asset tokenization tools and custody infrastructure for companies to scale new business models in the crypto economy. Harmonize’s main crypto custody product helps customers manage custody, tokenization, trading, and smart contract management throughout the decentralized finance (DeFi) market. The Swiss-based crypto custody firm has already provided its services to the likes of Citi, Bank BNP Paribas, and Union Bank.
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record,” said Ripple boss Bradley Garlinghouse in an official statement. “Bringing on Metaco is monumental for our growing product suite and expanding global footprint.”
Metaco hopes to experience accelerated growth in response to Ripple’s established customer base. Ripple presently has customers in more than 50 countries and can deliver payment services in more than 69 markets worldwide.
For its part, Ripple said diversifying into custody solutions will introduce new revenue opportunities, adding that the purchase is part of its broad strategy to expand its presence outside the United States and its unfriendly crypto regulatory environment.
When Final Verdict In SEC Lawsuit?
The blockchain payments firm is locked in a three-year-long fight with the U.S. Securities and Exchange Commission (SEC). In December 2020, Ripple and two top execs were sued for the unregistered sale of $1.3 billion worth of XRP. Garlinghouse recently estimated that the feud with the SEC will cost the company an astonishing $200 million.
As ZyCrypto reported earlier, the presiding judge dealt a blow to the SEC on Tuesday after ruling that the regulator cannot hide internal emails, text messages, and expert reports tied to William Hinman’s June 2018 speech. A decision from the judge in the first half of this year could settle the long-standing SEC v Ripple lawsuit.
Despite the lingering crypto winter and regulatory tensions, Ripple president Monica Long notes that the company is “uniquely positioned to address the growing institutional crypto custody market, expected to reach nearly $10 trillion by 2030.”
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