Key Points:
- Ripple has paid $250 million to Swiss cryptocurrency custody company Metaco.
- Metaco develops software that helps financial organizations store and manage digital assets.
- With this transaction, Ripple has become the only stakeholder of the Swiss crypto custodian.
Ripple, located in San Francisco, announced an ambitious $250 million acquisition of Swiss custody company Metaco today.
The deal signifies an expansion into offering crypto custody services for institutional investors for Ripple, an enterprise blockchain and payments expert. According to today’s statement, the business intends to begin providing users with tools to custody, issue, and settle tokenized assets.
The purchase, which was funded with a combination of cash and Ripple shares, will see Ripple become Metaco’s only shareholder, although the company will continue to function as an independent brand. Adrien Treccani, the company’s founder and CEO, will remain in charge.
Ripple will extend its capabilities to include custody, issuance, and settlement of tokenized assets for institutional investors using Metaco’s technology, which allows storage and administration of crypto assets. Numerous companies, including Citi, BNP Paribas, and Societe Generale’s digital asset unit, have been able to transition to new business models thanks to Metaco’s services.
The announcement of the purchase, one of the biggest in the crypto market in the last year or so, comes as the San Francisco-based firm continues to fight a lawsuit filed by the US Securities and Exchange Commission.
It also comes at a time when the crypto sector as a whole is dealing with a slew of issues, ranging from increased interest rates and tighter financing conditions to huge layoffs and declining firm values.
Ripple will undoubtedly encounter new chances as it diversifies into crypto custody. It is no longer news that investors have been more hesitant to make cryptocurrency investments in the aftermath of the 2022 upheaval, which was exacerbated by the fall of numerous cryptocurrency exchanges, including the failure and bankruptcy filing of FTX.
These investors are becoming more worried about where and how their crypto assets are kept. Ripple’s Chief Executive Officer (CEO), Brad Garlinghouse, thinks that institutional investors would now have a greater need for crypto custody.
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record. Bringing on Metaco is monumental for our growing product suite and expanding global footprint,” said Garlinghouse.
Garlinghouse recently projected that the legal fight would cost the corporation around $200 million while also warning crypto entrepreneurs from establishing their enterprises in the United States.
However, the court overseeing the Ripple case said on Tuesday that the regulator could not conceal papers related to former official William Hinman’s 2018 lecture on crypto and securities.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Source: https://news.coincu.com/188153-ripple-buys-metaco-for-250-million/