Ripple Acquires Swiss Crypto Custodian Firm Metaco in a Whopping $250 million deal to Focus on Diversification

Updated: 18 May 2023

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According to the latest reports, Ripple, the world’s sixth-largest cryptocurrency firm, has acquired Switzerland-based crypto custodian firm Metaco. Ripple has reportedly closed the acquisition at a whopping $250 million cash-equity deal. With this, Ripple has now become the sole shareholder in Metaco. However, the latter will continue to operate as an independent brand led by its founder and CEO, Adrien Treccani.

As a part of this deal, Metaco will also have access to Ripple’s entire customer base, valuable resources to serve a host of its institutional clients, and additional capital to fund growing market demand, if any.

Commenting on the acquisition, Brad Garlinghouse, CEO of Ripple, said, “Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record. 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.”

Metaco’s advanced tokenization technology and custody infrastructure will enable Ripple to offer an expanded array of innovative offerings to its clients and customers. It is even more crucial as several regulatory bodies globally have mandated crypto businesses to ensure the secure custody of digital assets in segregated accounts.

Sagar Shah, Head of Custody at Ripple, said, “Metaco’s technology, product-market fit, customer base, and unparalleled team make them the perfect partner for Ripple as we look to provide critical crypto infrastructure to enterprises. We are excited to support Metaco as they continue to deliver the same high-quality products and services.”

Strategic Importance of the Acquisition

Ripple’s acquisition of Metaco comes at a crucial time, as regulatory bodies in the United States of America continue to increase scrutiny on cryptocurrency firms and how they operate. While the infamous FTX saga has arguably been the biggest fallout of late, Ripple has also been fighting its own battle with the U.S. Securities and Exchange Commission (SEC). In 2020, the SEC accused Ripple of selling unregistered securities worth $1.3 billion of XRP tokens, which the latter had accused. While the lawsuit is still ongoing, Ripple has been working its way through regulatory demands in the country. On multiple occasions, Ripple CEO, Brad Garlinghouse, has pointed out the difficulties of running a sustainable crypto business in the United States of America.

The latest acquisition will enable Ripple to diversify its offerings by being able to custody, issue, and settle all kinds of tokenized assets using Metaco’s robust infrastructure. More importantly, as Garlinghouse also stated, Ripple will be able to expand operations beyond the U.S. into countries where regulatory bodies and their guidelines are not as stringent.

Additionally, the deal could well be Ripple’s first move towards building a portfolio of established crypto-oriented firms, thus creating a stronger array of capabilities to serve the ever-growing cryptocurrency market. We will have to wait and watch if that is the case.

A Win-Win Deal

Switzerland-based Metaco is the developer of tokenization tools and custody infrastructure that enables financial organizations to leverage and explore innovative business models in the crypto-powered digital economy. In fact, Metaco’s flagship product, named Harmonize, is considered the gold standard for custody infrastructure. It has already amassed clients like Citi, BNP Paribas, DBS, Union Bank, and DZ Bank, among other established names. Now, having joined forces with Ripple, Metaco will enjoy access to the former’s entire network of clients, customers, and partners, thus creating new opportunities for itself to expand further.

In an official post-acquisition statement, Adrien Treccani, founder and CEO, Metaco said, “Our mission has always been to enable institutions to thrive in the digital asset economy with the help of our core infrastructure and expertise, and we are delighted to join forces with the team at Ripple, who share that passion. 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.

On the other hand, with the crypto custody market set to hit the $10 trillion mark over the next seven years, this acquisition seems to be a no-brainer for Ripple.

About Ripple

Ripple is a blockchain-tech company that offers a suite of payment products that enable cross-border transactions. Its proprietary cryptocurrency, XRP, has a market capitalization of around $23 billion. Ripple, which now has a presence in over 50 countries, collaborates with traditional financial institutions including banks to offer blockchain and crypto-based integrations.

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