Ripple Acquires Crypto Custody Firm Metaco for $250 Million
Ripple’s acquisition of Metaco will enable the company to broaden its services through the integration of custody, issuance, and payment technologies for digital assets.
Ripple Acquires Crypto Custody Firm Metaco for $250 Million
On May 17, 2023, blockchain technology company Ripple announced its acquisition of Metaco, a Swiss-based crypto custody service provider, for $250 million.
Today, we are proud to announce Ripple has acquired @metaco_sa, becoming the sole shareholder of the Swiss-based provider of digital asset custody and tokenization technology.
— Ripple (@Ripple) May 17, 2023
Learn more: https://t.co/GrI3u13iDT
Metaco offers secure custody infrastructure for clients, enabling organizations to expand their business models within the crypto economy.
For Ripple, a leader in enterprise blockchain and payments, this acquisition marks a significant expansion into crypto custody services for institutional investors. Ripple stated that diversifying into custody solutions would provide a new revenue stream and is part of its strategy to enhance its global presence beyond the United States.
Metaco’s primary crypto custody product, Harmonize, aids investors in managing custody, transactions, tokenization, staking, and smart contract management in DeFi.
A Powerhouse Combination in Payments
Founded in Switzerland in 2015, Metaco serves a broad range of clients, including global banks, financial institutions, and other enterprises. The company operates in several markets, including Switzerland, Germany, Turkey, France, the UK, the US, Singapore, Australia, Hong Kong, and the Philippines, and provides services to major organizations such as Citi, Union Bank, and BNP Paribas.
Meanwhile, Ripple has clients in over 55 countries and offers its payment services in more than 70 markets globally. Ripple’s token, XRP, is the sixth-largest cryptocurrency by market cap, valued at $23 billion according to CoinGecko.
According to a company spokesperson, the transaction is funded through a combination of cash and Ripple’s equity.
“Metaco is a leading digital asset custody provider for institutions with an outstanding management team and a significant client roster,” said Brad Garlinghouse, CEO of Ripple, in a statement. “Integrating Metaco into our expanding product suite and extending our global reach is a major milestone.”
Ripple will become the sole shareholder of Metaco, but the company will continue to operate as an independent business under the leadership of founder and CEO Adrien Treccani.
Ripple Still in Legal Battle with SEC
The news of the acquisition comes amid Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). In December 2020, Ripple was accused by the SEC of issuing unregistered securities in the form of XRP, leading to a $1.3 billion lawsuit targeting the company and its executives, including CEO Brad Garlinghouse and Chairman Chris Larsen.
Since then, Ripple has been entangled in a protracted legal fight with the SEC, continually appearing in court to present evidence against the regulator’s allegations.
Most recently, according to a report published on April 28, 2023, Ripple generated $361 million from XRP sales in Q1 2023.
