Ripple Buys Crypto Custody Firm Metaco for $250 Million

Lavina Daryanani
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On Wednesday, May 17, Ripple revealed that it has acquired Metaco, a Swiss custody firm that holds digital assets like crypto for clients. With this acquisition, the company intends to expand its international presence and widen its service range. Ripple has invested around $250 million from its own balance sheet to complete the arrangement. Ripple CEO, Brad Garlinghouse told CNBC,

“This is the largest deal we’ve seen in the last year.”

Garlinghouse also took Twitter to welcome Metaco and its executive Adrien Treccani on board. Via this acquisition, Ripple has now expanded into the custody sector. The blockchain company will now be able to support customers with technology that will help them send, settle, and issue any type of tokenized asset. Garlinghouse labeled this to be “massive” and added in the official statement,

“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.”

Also Read: Why Is XRP Surging by Over 8% Today?

Ripple is going to play offense: Garlinghouse

The crypto industry is still in the aftermath of winter. Garlinghouse underlined that this is a time that others are “closing their doors” or laying off employees. In such an environment, the Metaco purchase is a “real important signal” for the industry. The Ripple executive added,

“It’s also a signal that Ripple’s in a strong position—we’re going to play offense.”

In fact, Garlinghouse also asserted that he is “incredibly bullish” about Ripple’s trajectory. This latest acquisition is a step that will help the blockchain company attain its long-term vision and add to the crypto utility.

Also Read: Societe Generale Launches Ethereum-Based Euro Stablecoin

Metaco is “a good fit in terms of the strategic opportunity,” according to Garlinghouse. The crypto custody firm shelters several notable financial companies as clients. The same include Citi, BNP Paribas, BBVA and Societe Generale. As per the official announcement, Ripple highlighted that the growing institutional crypto custody market is expected to reach “a staggering” $10 trillion by 2030.

According to Metaco’s Treccani, this deal will enable his firm “to leverage Ripple’s scale and market strength” to reach its goals and deliver value to its clients at a “faster pace.”