• Ripple Labs has announced that it is acquiring Swiss-based digital asset custody provider Metaco for $250,000,000.
• The acquisition will allow Ripple’s blue-chip clients to custody, issue, and settle any type of tokenized asset.
• News of the purchase caused XRP to surge 4.6%.
Ripple Acquires Institutional Digital Asset Custody Firm Metaco
Ripple Labs has announced that it is purchasing Metaco, a Swiss-based digital assets custody provider, for $250 million in response to research indicating that institutional investors plan to heavily incorporate crypto custody services into their business models within the next three years.
Benefits of the Acquisition
The fusion of the companies benefits both parties as Metaco’s services will allow Ripple’s blue-chip clients to custody, issue, and settle any type of tokenized asset. Additionally, Metaco will gain access to Ripple’s huge base of customers which should “dramatically accelerate its growth trajectory.”
Reaction from Ripple CEO Brad Garlinghouse
Ripple chief executive Brad Garlinghouse said in a press release: “Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record. 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.”
Impact on XRP Price
News of the purchase sent XRP upwards. The crypto asset is trading for $0.439 at time of writing, a 4.6% increase during the last 24 hours.
Conclusion
Ripple’s acquisition of Metaco demonstrates its commitment to creating an infrastructure that enables secure and efficient transactions with cryptocurrencies and other forms of digital assets by providing comprehensive solutions to its customers needs such as institutional grade custodial services for digital assets management.