Ripple Acquires Metaco for $250M, Set to Offer Custodial Services
- The firm behind XRP coin, Ripple, has acquired Switzerland-based digital asset custodian Metaco for around $250 million.
- The firm aims to expand its offerings and will soon handle custody, issuance, and settlement of tokenized assets.
- The developers at the firm expect the digital asset custody industry to grow to $10 trillion by 2030.
- Ripple also expects that major financial institutions and enterprises will integrate crypto in the next three years.
- “Bringing on Metaco is monumental for our growing product suite and expanding global footprint,” said CEO Garlinghouse.
Ripple, a blockchain-based payments settlement company that rose in popularity due to its efficient On Demand Liquidity, or ODL, solution, has announced the acquisition of Metaco, a Switzerland-based company that provides “mission-critical custody infrastructure” and allows institutions to thrive in the digital assets industry. Metaco was founded in 2015 by Adrien Treccani, who is responsible for setting the strategy and direction of the blockchain company.
As per an announcement on May 17, the firm behind the XRP token, the sixth-biggest crypto coin by market capitalization, announced its acquisition of Metaco for a price tag of $250 million. It is important to note here that Ripple plans to expand its offerings and provide custody, issuance, and settlement of tokenized assets.
The developers at Ripple wrote that, as per recent research conducted by the firm, “most global finance leaders at financial institutions and enterprises have plans to use crypto custody solutions in their businesses within the next three years—primarily through a third party provider.”
The CEO of Ripple, Brad Garlinghouse, noted that “Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record,” while adding:
“Through the strength of our balance sheet and financial position, Ripple will continue pressing our advantage in the areas critical to crypto infrastructure. Bringing on Metaco is monumental for our growing product suite and expanding global footprint.”
On the other hand, the developers at the payments firm added that the acquisition of Metaco will “dramatically accelerate its growth trajectory through access to Ripple’s established base of hundreds of customers, capital to address new demand, and resources to continue delivering on its commitment to banking and institutional clients.”
As per the announcement, the firm estimates that by 2030, the crypto custody industry will reach a valuation of $10 trillion. Talking about the involvement of institutions in the crypto sector, Ripple gave examples of BNY Mellon’s crypto-custody management plans, followed by Nasdaq’s plan to debut a crypto custody solution in the second quarter of 2023.
“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. We look forward to continuing to serve unprecedented levels of institutional demand with the utmost excellence in delivery, as our clients have come to expect, the founder and CEO of Metaco, Treccani, commented.
It is also crucial to note that the Securities and Exchange Commission (SEC) of the United States’ request to seal the Hinman Speech Documents was denied by Judge Analisa Torres on May 16 in the Ripple vs. SEC case, and these documents will be made public in the Ripple vs. SEC case, according to an earlier report from Bitnation. This was declared a huge win for transparency by Garlinghouse.
The motion from the SEC to seal the documents has been dismissed. The agency believes that the Hinman Speech Documents have “no relevance” in the Ripple vs. SEC case, which has been going on for quite a number of years.
On the other hand, the judge also denied certain motions asking for the sealing of certain documents from Ripple, including references linking the company’s revenues with sales of the XRP token and the amount of compensation offered to trading platforms, etc.