Ripple has acquired Metaco, a Swiss based digital asset custody firm for $250 Million.
In a significant development in the world of cryptocurrency, Ripple has announced its acquisition of Metaco, a Swiss digital asset custody firm, for a staggering $250 million.
Metaco has established itself as a key player in the industry, providing its cutting-edge technology to numerous mainstream banks. Over the past year, the firm has successfully partnered with renowned financial institutions such as BNP Paribas Securities Services, SocGen Forge, Citi, DekaBank, DZ Bank, DBS, BBVA, and Standard Chartered’s Zodia Custody.
What sets Metaco apart from other major custody firms is its ability to achieve impressive milestones without resorting to extensive capital raising efforts. While competitors like Copper and Anchorage have raised hundreds of millions and Fireblocks has amassed over a billion, Metaco has managed to secure a modest $20 million in funding, including $17 million in 2020.
Brad Garlinghouse, the CEO of Ripple, expressed enthusiasm about the acquisition,
A History of Serving the banking industry
While Ripple has recently gained attention due to its legal battle with the U.S. Securities and Exchange Commission (SEC) regarding the XRP cryptocurrency, the company has a long history of serving banks.
Previously, Ripple offered its RippleNet solution to financial institutions, providing them with a permissioned payment messaging system that competes with SWIFT and does not rely on XRP. Prominent banks such as Santander and MUFG were among Ripple’s notable clients.
In a recent interview with CNBC Ripple CEO Garinghouse indicated that the U.S. will likely push companies to leave as the regulations are confusing for companies engaged with cryptocurrencies and blockchain technology. The most recent acquisition of Metaco showcases Ripple’s global ambitions and its expansion into our markets as a leader in the Web3 space.
The alliance with Metaco in Switzerland aligns well with Ripple’s objectives in the area of CBDC’s.
