Ripple Acquires Swiss Crypto Custody Platform Metaco for $250M as Part of Push toward Tokenization
US remittance system Ripple acquired Metaco to leverage the company’s resources and entrench itself in the emerging crypto custody market.
Ripple has acquired Swiss-based Metaco for $250 million as part of the remittance network’s expansion into institutional crypto custody. The acquisition also comes amid a favorable ruling for Ripple in its ongoing lawsuit with the Securities and Exchange Commission (SEC).
Ripple’s acquisition of Metaco underpins the US-based tech platform’s faith in the tokenization space. Speaking to Decrypt, Ripple’s head of custody Sagar Shah predicts that the institutional crypto custody market will hit $10 trillion by 2030. The company’s Metaco acquisition now sees Ripple prepare for the boom as the sole shareholder of the digital asset custody company. Nonetheless, Metaco would continue operations as an independent brand.
📢 Today, we announce that Metaco becomes part of @Ripple, joining forces in providing exceptional mission-critical software infrastructure solutions that empower institutions to thrive in the rapidly evolving digital asset economy.
To learn more: https://t.co/U68za92n6o pic.twitter.com/scPwNrYfQi— Metaco (@metaco_sa) May 17, 2023
Ripple seeks to expand its institutional offerings to customers, using Metaco’s resources, while the Swiss company expects to benefit from Ripple’s established customer base.
Ripple & Metaco CEOs Comment on Acquisition Advantages
Weighing in on Metaco and the immediate advantages it brings to the table, Ripple chief executive officer Brad Garlinghouse pointed out:
“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.”
Meanwhile, Metaco founder and CEO Adrien Treccani said Ripple shares his company’s passion for helping institutions thrive with digital assets. “We are delighted to join forces with the team at Ripple,” Treccani gushed, adding that Metaco would leverage the remittance network’s resources.
The Metaco chief executive pointed out that Ripple’s scale and market strength would speed up achieving goals. Treccani said Metaco would continue to serve its clients’ institutional demand with “the utmost excellence in delivery”.The Swiss company provides institutions with requisite tokenization tools and custody infrastructure to scale new crypto-focused business models. Companies that have used, or are using, Metaco’s services include Citigroup (NYSE: C), Bank BNP Paribas, and Union Bank.
Future of Digital Assets Is Tokenization
Ripple views its Metaco acquisition as a long-term play for supremacy in the digital assets space. The currency exchange and remittance network hopes to leverage explosive crypto market growth by combining forces with the Swiss platform. According to Ripple’s head of custody Sagar Shah, crypto assets under custody could surpass $10 trillion by the decade’s end. Shah further added that most of these assets would be driven by institutional adoption. In an email to Decrypt, the Ripple executive described the acquisition as a “natural progression” to servicing customers’ needs. These services include the ability to custody, issue, and settle all tokenized assets while tapping a new revenue stream for the company.
Investment powerhouse BlackRock also echoed Ripple’s take on the future of tokenization. Early last December, CEO Larry Fink described the tokenization of securities as the “next generation of markets”.
Elsewhere, Citibank’s finance executive Ronit Ghose said tokenization could drive up blockchain value immensely by 2030.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
