- Metaco offers customers critical and safe custody infrastructure
- Diversifying into custody solutions will increase Ripple's revenue and help them expand beyond the US
Blockchain company Ripple announced the acquisition of Swiss-based crypto custody firm Metaco for $250 million, Bankless Times learned from a press release.
The acquisition will allow the blockchain firm to grow its offerings by integrating the technology to issue, custody, and settle digital tokenized assets.
The Swiss company offers customers critical and safe custody infrastructure, enabling institutions to expand their innovative business models.
Broadening its presence beyond the US
According to Ripple, diversifying into custody solutions will not only increase their revenue, but also help the company expand its presence beyond the US. Ripple is one of many companies to make this effort in order to escape the lack of clarity on crypto regulations in the US.
A company spokesperson stated that the acquisition was funded through a combination of Ripple equity and cash. Ripple CEO Brad Garlinghouse said:
Metaco is a proven leader in institutional digital asset custody with an exceptional executive branch and a truly unmatched customer track record.
Ripple will become the sole shareholder of the Swiss firm, which will keep operating as an autonomous business unit led by Adrien Treccani, its CEO and founder.
SEC lawsuit will cost Ripple $200M
The US Securities and Exchange Commission filed a lawsuit against Ripple in 2020, claiming the latter sold XRP tokens worth as much as $1.3 billion as unregistered securities. Recently, Mr. Garlinghouse estimated his company would pay $200 million in legal costs. He discouraged crypto firms from setting up shop in the US.
Despite the years-long legal battle, Ripple hasn’t stopped making strategic investments. In March, the company announced one in Blockchain Founders Fund (BFF), an early-state VC fund based in Singapore, which focuses on top-grade Web3 startups around the world. The investment is aimed at speeding up adoption of blockchain technology across the globe.
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