Ripple Acquires Swiss Custody Firm Metaco In $250M Deal
San Francisco-based blockchain company Ripple has announced its acquisition of Swiss custody firm Metaco in a deal worth $250 million. The acquisition marks a significant step for Ripple, which has traditionally focused on enterprise blockchain and payment services, as it expands into providing crypto custody services for institutional investors.
Ripple, which spent $250 million to acquire Swiss crypto custody firm Metaco, plans to begin offering clients tools to custody, issue and settle tokenized assets. The deal, financed through a combination of cash and Ripple equity, will make Ripple the sole shareholder of Metaco,…
— Wu Blockchain (@WuBlockchain) May 17, 2023
Ripple’s Acquisition
With this move, Ripple plans to offer customers tools to custody, issue and settle tokenized assets, according to the company’s announcement. The transaction was financed through a combination of cash and Ripple equity, with the blockchain firm becoming the sole shareholder of Metaco. However, Metaco will continue to operate as a standalone brand, and its founder and CEO, Adrien Treccani, will remain in his position.
Metaco, which was founded in Switzerland in 2015, provides a range of services to global custodians, large banks, financial institutions, and other corporates. Its core crypto custody product, Harmonize, allows investors to manage custody, trading, tokenization, staking, and smart contract management across the DeFi ecosystem. The company is already live across various markets, including the United States, Switzerland, the United Kingdom, Australia, Hong Kong, and others.
Metaco’s Digital Asset Custody Leadership
Ripple’s CEO Brad Garlinghouse described Metaco as “a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record.” He added that the acquisition is monumental for Ripple’s growing product suite and expanding global footprint.
Despite Ripple’s ongoing dispute with the U.S. Securities and Exchange Commission (SEC), the blockchain firm continues to expand. In 2020, the SEC accused Ripple of raising $1.3 billion through the sale of XRP, a token, and also sued CEO Garlinghouse and co-founder Christian Larsen. A decision from a federal judge settling the dispute could come as soon as the first half of this year. Monica Long, Ripple’s president, believes the acquisition will position Ripple to address the growing institutional crypto custody market, which is expected to reach nearly $10 trillion by 2030.
In an interview with CNBC in May 2022, Garlinghouse signaled that the company had a “very strong balance sheet” and may seek out M&A opportunities. The acquisition of Metaco is a testament to the blockchain firm’s plans for expansion, even amidst regulatory challenges.
