In a major development in the world of cryptocurrency, Ripple has acquired Swiss crypto custody company Metaco. Ripple, which is well-known for its digital payment solutions, has been expanding its business portfolio with each passing day. The acquisition of Metaco allows Ripple to have its own proprietary technology and security infrastructure, giving it greater control over the custody, storage, and security of digital assets.
Metaco is a leading Swiss-based crypto custody company that has developed a unique suite of digital asset solutions, including storage, trading, and settlement services for cryptocurrencies. Its core product, SILO, is a secure and scalable cryptocurrency custody solution that provides secure key management, multi-layer protection, and institutional-grade security. With the acquisition of Metaco, Ripple will gain access to the highly sought-after SILO technology, which will enable it to offer its clients institutional-grade security and high-speed trading capabilities.
The acquisition of Metaco is a strategic move for Ripple, as it adds to its growing portfolio of blockchain-based products and services. Metaco has a proven track record of developing and deploying high-tech security and custody solutions that are trusted by some of the world’s largest financial institutions. The acquisition provides Ripple with the necessary infrastructure to be a major player in the global blockchain market, which is expected to grow exponentially over the next few years.
Additionally, the acquisition provides Ripple with a significant foothold in Switzerland, one of the world’s leading financial centers. Switzerland is renowned for its advanced digital asset infrastructure, which is backed by a stable political and economic environment. The country serves as a hub for many of the world’s leading financial institutions, which means that Ripple will have access to a vast pool of potential clients and partners.
The acquisition of Metaco is not the only significant move made by Ripple in recent times. In June 2021, Ripple also announced the launch of a new private ledger platform, called XRP Ledger, which is designed to provide digital asset users with the same level of security and flexibility as traditional financial institutions. The XRP Ledger platform is expected to become a key component of Ripple’s ecosystem, providing users with features like decentralized finance (DeFi) applications, smart contract functionality, and token issuance.
The acquisition of Metaco is also a significant move for the broader cryptocurrency market, which has seen a significant increase in institutional interest in recent years. Institutions are looking for more secure and reliable ways to store and trade digital assets, and the acquisition of a company like Metaco by Ripple demonstrates that institutional-grade solutions are now becoming available. This is also a positive development for the wider adoption of blockchain technology, which is expected to revolutionize numerous industries in the future.
In conclusion, the acquisition of Metaco is a significant move for Ripple, providing it with the infrastructure necessary to become a leading player in the digital asset market. The acquisition also demonstrates the growing institutional interest in cryptocurrency and blockchain technology, which is expected to continue to grow rapidly in the coming years. With Ripple’s continued innovation and expansion, it seems that the future of blockchain technology is bright, and Metaco is poised to play a significant role in that future.
Blockchain and crypto company Ripple has acquired Swiss startup Metaco to expand into digital asset custody and tokenization technology as well as broaden its geographical reach, the company announced on Wednesday.
The acquisition is expected to help Ripple capitalize on the increasing demand for institutional cryptocurrency custody services. According to the company, the institutional crypto custody market is projected to reach $10 trillion by 2030. Ripple CEO Brad Garlinghouse said in an interview with CNBC that the company used $250 million of cash from its balance sheet to fund the acquisition.
Metaco provides custody infrastructure for institutions to scale new business models in the crypto economy and its technology offerings are currently available in Switzerland, Germany, Turkey, France, the U.K., the U.S., Singapore, Hong Kong, and the Philippines, among other jurisdictions. Last year, BNP Paribas teamed up with Metaco to offer crypto custody services to its clients, while other Metaco clients include Societe Generale and Citigroup.
Ripple, which is associated with the XRP token, uses blockchain and cryptocurrency for use in areas such as cross-border payments, central bank digital currencies, liquidity management, and tokenization. The company said that enabling customers to custody, issue, and settle these tokenized assets is a natural next step in both its and the industry’s evolution.
The acquisition comes at a time of regulatory uncertainty for the crypto sector. Ripple Labs said it expects to spend $200 million fighting a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which contends that XRP is a security, while Ripple considers it to be a currency. The SEC filed the lawsuit in December 2020.
Despite the regulatory challenges, Ripple’s move to acquire Metaco reflects its confidence in the future potential of cryptocurrency. Recent research conducted by Ripple shows that most global finance leaders at financial institutions and enterprises have plans to use crypto custody solutions in their business within the next three years, primarily through a third-party provider.
By acquiring Metaco, Ripple is not only expanding its presence in the cryptocurrency custody space, but also increasing its geographical reach. This move is significant for Ripple as it continues to navigate the complex and rapidly evolving regulatory landscape of the crypto sector.
Overall, the acquisition of Metaco is a strategic move by Ripple to position itself as a leading player in the institutional crypto custody market. With demand for these services expected to grow exponentially over the next decade, Ripple is well-positioned to capitalize on this trend and advance the adoption of cryptocurrency in traditional finance.
