Ripple Acquires Swiss Crypto Custody Provider Metaco for $250 Million
Blockchain company Ripple has made a significant move by acquiring the Swiss-based crypto custody provider Metaco for a sum of $250 million. This acquisition aims to expand Ripple’s range of services by incorporating Metaco’s technology for custody, issuance, and settlement of tokenized assets. Metaco is renowned for offering secure and vital custody infrastructure to its customers, enabling institutions to explore new business models within the crypto economy.
Ripple’s decision to diversify into custody solutions presents new revenue opportunities for the company. Moreover, the acquisition aligns with Ripple’s broader strategy of expanding its global presence beyond the United States, given the uncertain regulatory landscape it faces. Ripple and several of its executives had been embroiled in a lawsuit filed by the U.S. Securities and Exchange Commission in 2020, relating to the unregistered sale of approximately $1.3 billion worth of XRP tokens.
Brad Garlinghouse, the CEO of Ripple, estimated that the legal battle would cost the company around $200 million. He also cautioned crypto entrepreneurs against establishing their businesses in the United States. In a recent development, the judge overseeing the Ripple lawsuit ruled that the regulator cannot seal documents related to a 2018 speech on crypto and securities by former official William Hinman.
The acquisition of Metaco was financed through a combination of cash and Ripple equity, as confirmed by a company spokesperson. Brad Garlinghouse expressed confidence in Metaco’s leadership and track record, stating, “Metaco is a proven leader in institutional digital asset custody with an exceptional executive team and an unmatched customer track record.” As part of the acquisition, Ripple will become the sole shareholder of Metaco, while allowing the latter to continue operating independently under the leadership of its CEO, Adrien Treccani.
