On May 31st, 2021, Ripple, a blockchain company that specializes in global payments, announced its acquisition of Metaco, a digital asset custody solutions provider, for $250 million. The acquisition will help Ripple further expand its offerings and enable its customers to interface with various digital assets seamlessly.
Ripple is well-known for its blockchain solutions that allow faster and more efficient cross-border payments. The company’s technology is widely used by financial institutions to facilitate international transactions, and it has carved out a significant niche in the fintech industry. The purchase of Metaco marks a significant investment for Ripple, as it seeks to grow its capabilities beyond just cross-border payments.
Metaco is a digital asset custodian that offers custody solutions for cryptocurrencies and digital assets. Its services include the design and development of crypto wallets and the provision of secure storage and management services for digital assets. In addition, the company also offers solutions that enable financial institutions to integrate cryptocurrencies and digital assets into their existing systems securely.
The acquisition comes at a time when cryptocurrency investments are on the rise, and institutional investors are showing more interest in the crypto market. As traditional financial institutions begin to enter the cryptocurrency market, digital asset custody solutions are becoming increasingly important. Metaco’s acquisition gives Ripple direct access to the custodian technology it needs to provide its customers with secure and reliable crypto investment services.
In a statement, Ripple CEO Brad Garlinghouse announced, “We are thrilled to welcome Metaco to the Ripple family. The acquisition will be a game-changer in the way we service our customers, enabling us to offer state-of-the-art digital asset custody, which is unmatched in the industry. This is an exciting development for Ripple as we seek to expand our global presence and support institutional adoption of cryptocurrencies and digital assets.”
According to the terms of the agreement, Metaco will continue to operate as an independent business unit, and its team will remain unchanged. However, under Ripple’s ownership, Metaco will have access to additional resources, enabling the company to expand its service offerings and scale its business.
Furthermore, the acquisition of Metaco will also enable Ripple to apply Metaco’s digital asset custody technology to its XRP Ledger, a decentralized cryptocurrency ledger used by Ripple. The ability to secure and protect XRP Ledger will potentially drive the adoption of XRP by institutional investors, financial institutions, and cryptocurrency exchanges seeking to enable secure asset custody and management.
As the demand for digital asset custody solutions continues to grow, Ripple’s acquisition of Metaco is a strategic move that could position the company as a leader in the digital assets space. It offers a unique opportunity for Ripple to expand its reach and redefine how financial institutions transact in the cryptocurrency market.
In conclusion, Ripple’s acquisition of Metaco for $250 million is an exciting development for Ripple and the broader cryptocurrency market. The acquisition signals Ripple’s intention to expand its business beyond just cross-border payments and further into the crypto asset custody space. As institutional adoption of cryptocurrency and digital assets continues to grow, Ripple’s acquisition of Metaco could provide significant value to its customers. With the resources, talent, and technology that the acquisition brings, Ripple is well placed to capitalize on the growing demand for digital assets custody solutions.
U.S. cryptocurrency firm Ripple has acquired Switzerland-based crypto custody company Metaco for $250 million, its first major acquisition. Metaco develops technology that allows financial institutions to manage and store digital assets, with clients including BNP Paribas, Citi, and Societe Generale’s digital asset arm. As investor interest in cryptocurrency has cooled in the wake of a drop in cryptocurrency prices and a string of collapses at major crypto firms, such as FTX, demand for secure crypto custody services has increased. Ripple CEO Brad Garlinghouse said he expected to see more institutional investors seek out these services. More than half of the acquisition was paid for in cash. Ripple’s token, XRP, is the world’s sixth-largest cryptocurrency, with around $23 billion of the coin in circulation.
