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Ripple has revealed its acquisition of the Swiss-based cryptocurrency custody firm Metaco, signifying the blockchain company’s growth within the expanding institutional crypto custody sector.
The transaction, valued at $250 million, emerges as Ripple continues to contest the protracted lawsuit initiated by the US Securities and Exchange Commission.
Ripple Acquires Metaco
Ripple is anticipated to enhance its enterprise solutions, equipping clients with the technology necessary to custody, issue, and settle various types of tokenized assets. Central to this agreement, both companies aim to capitalize on the burgeoning institutional crypto custody market, projected to reach $10 trillion by 2030.
Conversely, Metaco will have the opportunity to utilize the established network of hundreds of clients and resources from the San Francisco-based firm to meet the increasing demands of its banking and institutional clientele.
As stated in the official press release, Metaco will maintain its operations as an independent brand and business unit, with its founder and CEO, Adrien Treccani, overseeing its activities.
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In response to the announcement, Ripple CEO Brad Garlinghouse remarked,
“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.”
Reports indicate that Ripple utilized $250 million in cash from its own balance sheet to facilitate the acquisition, despite the challenging market environment characterized by rising interest rates and tighter funding conditions, leading to widespread layoffs and declining company valuations.
In a conversation with CNBC, Garlinghouse stated that the acquisition would assist Ripple in enhancing its international presence during a period when the SEC is implementing strict measures against significant entities in the digital asset sector.
Ripple Vs. SEC: Another Breakthrough
The lawsuit brought against Ripple has been ongoing for several years. However, a notable development occurred when a federal judge determined that the SEC cannot keep documents related to former official William Hinman’s 2018 speech on cryptocurrency and securities confidential.
The documents in question include drafts and emails that suggested the agency did not classify Ether as a security at that time. The legal team representing Ripple has been striving to uncover more about how Hinman’s conclusions could influence XRP’s classification.
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