Ripple has successfully acquired the digital asset custody solutions provider, Metaco, shelling out $250 million for the deal.
In Brief
With this latest acquisition, Ripple expands its capabilities in the custody of digital assets, investing $250 million in Metaco, a firm known for its robust platforms.
This deal positions Ripple to strengthen its enterprise capabilities and connect with Metaco’s extensive client base in institutional banking.
Metaco will maintain its identity as an independent entity, continuing its operations under the leadership of its founder and CEO Adrien Treccani.
Ripple’s acquisition of Metaco is a major advancement in diversifying its portfolio and adjusting its approach to generate new revenue streams while facing ongoing legal challenges from the SEC. The commission accuses Ripple Labs and its executives of breaching U.S. securities regulations by trading XRP, its own cryptocurrency, without proper registration.
This acquisition equips Ripple to enhance its presence worldwide, navigating through regulatory hurdles in the United States. The merger not only broadens Ripple’s enterprise offerings but also provides customers innovative technologies for securely managing, issuing, and settling tokenized assets. Meanwhile, Metaco gains resources and funding to scale its offerings for the evolving needs of institutional clients.
Both companies have a long-standing history of catering to institutional clients. Since 2016, various banks including Santander, UniCredit, and UBS have utilized Ripple’s technology to enhance cross-border payment efficiency. Likewise, Metaco has collaborated with major financial institutions like BNP Paribas and Citi across several global markets including Germany, Turkey, and the U.S.
Metaco’s flagship solution, Harmonize, empowers clients to securely store, trade, and transfer cryptocurrencies and digital assets, manage tokenization, and integrate these assets into web3 decentralized applications.
Brad Garlinghouse, the CEO of Ripple, praised Metaco, calling it a recognized leader in institutional digital asset custody with an outstanding track record and a strong executive team. He noted that acquiring Metaco is a game-changing step for expanding Ripple’s offerings and solidifying their presence in the crypto infrastructure space.
Ripple is well-regarded for its premier payment products and offers various services, including solutions for cross-border transactions. Their technology is designed to facilitate payments between various currencies at minimal costs.
The company has broadened its service array to tackle emerging needs such as liquidity management and tokenization, even venturing into the realm of Central Bank Digital Currencies (CBDCs). In spite of the ongoing SEC lawsuit, Ripple claims to serve hundreds of clients across 55 nations and six continents, facilitating payouts in over 70 markets.
After the acquisition, Ripple will hold complete ownership of Metaco, which will continue to function as an independent subsidiary with Adrien Treccani at the helm.
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In line with the Trust Project guidelines Cindy serves as a journalist at Metaverse Post, focusing on the web3 landscape, NFT trends, the metaverse, and AI innovation, while also conducting insightful interviews with key figures in the Web3 ecosystem. With conversations held with over 30 high-ranking executives, she delivers valuable perspectives to her audience. Originally hailing from Singapore, Cindy is currently based in Tbilisi, Georgia. She earned her Bachelor’s degree in Communications & Media Studies from the University of South Australia, with a decade of professional writing and journalism experience under her belt.
