Ripple is spending $250 million to acquire Metaco, a Swiss firm that specializes in crypto custody for institutional investors.
Ripple is primarily known for its payment services and is one of the oldest blockchain-based payment networks. With Metaco being its first major acquisition, leadership at Ripple is looking to expand its services so customers can custody their digital assets with its forthcoming product suite.
Ripple CEO Brad Garlinghouse lauded Metaco’s track record in digital asset custody, and Monica Long, President of Ripple, further explained the company’s plans when it comes to allowing customers to hold their crypto on its platform.
“Custody is a key facet of the infrastructure required for enterprise crypto services. Adding these capabilities to Ripple’s already growing product solutions means we can continue to support customers as they look to utilize crypto and blockchain for real-world use cases across all phases of adoption,” Long said.
Sagar Shah, Head of Custody at Ripple, told Blockworks that they’ve spent nearly two years searching for crypto custodians and evaluating their services. Metaco simply stood out among the rest, with its “first-rate bank customers,” and a “crypto native team.”
Some of Metaco’s banking customers include Citi and BNP Paribas, both of which partnered with Metaco in mid-2022 to integrate its digital asset custody platform called Harmonize into their existing infrastructures.
Metaco Founder and CEO Adrien Treccani said he was “delighted” to join Ripple and said the acquisition will allow Metaco to scale up in the market.
“Our mission has always been to enable institutions to thrive in the digital asset economy,” Treccani said. “This deal will enable Metaco to leverage Ripple’s scale and market strength to reach our goals and deliver value to our clients at a faster pace.”
Metaco has previously teamed up with established players in TradFi to give them access to their banking and custody technology.
Citi partnered with Metaco in June 2022. Citi planned to integrate Metaco’s digital asset custody platform called Harmonize into its existing infrastructure.
And less than a month later, BNP Paribas partnered with Metaco as well for the same exact purpose.
Following the Metaco deal, which is now closed, Ripple will become its sole shareholder, though Metaco “will continue to operate as an independent brand and business unit.” That business unit will be helmed by Treccani.
Updated May 17, 2023 at 8:24 am ET: Added quote and context.
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Source: https://blockworks.co/news/ripple-acquires-metaco