Blockchain firm Ripple has acquired Switzerland-based cryptocurrency custody technology provider Metaco for $250 million, according to a report in May. announced in a statement on the 17th.
The acquisition will allow Ripple to expand its offerings by incorporating technology for custody, issuance and settlement of tokenized assets. Metaco’s technology provides clients with a critical and secure custody infrastructure, enabling institutional investors to expand new business models in the crypto economy.
Diversification into custody solutions will bring new revenue opportunities, Ripple said, adding that the acquisition is part of its strategy to expand its presence beyond the United States and its uncertain regulatory landscape.
In 2020, Ripple and some executives were sued by the U.S. Securities and Exchange Commission (SEC) for the unregistered sale of XRP (XRP) worth approximately $1.3 billion. faced lawsuits.
Ripple CEO Brad Garlinghouse recently estimated that the legal battle would cost the company about $200 million, while also prompting crypto entrepreneurs to set up businesses in the United States. I warn you not to. Also, on May 16, the judge in charge of the Ripple case ordered the non-disclosure of a 2018 speech on crypto assets and securities by former SEC Director of Corporate Finance William Hinman. Denied the SEC’s petition.
The acquisition was financed with a combination of cash and Ripple stock, according to a company spokesperson.
“Metaco is a proven leader in institutional crypto custody with an exceptional management team and a truly unmatched client track record,” said Garlinghouse.
Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent business unit led by founder and CEO Adrien Treccani.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Ripple Buys Crypto Custody Firm Metaco for $250M