Highlights:

  • The company announced that the acquisition would expand its enterprise offerings to include custody and the ability to issue, settle, and trade any tokenized asset.
  • Following the acquisition, Metaco will continue to operate as an independent brand and business unit under the leadership of its founder and chief executive officer, Adrien Treccani.

Ripple Labs Inc., a blockchain technology company, has acquired the digital asset custody and tokenization firm Metaco SA for USD 250 million, the company announced recently.

Metaco provides a cryptocurrency and digital asset custody infrastructure platform, enabling institutions to store tokens. Harmonize, an enterprise-grade system, lets banks, corporations, and other institutions produce and store tokens.

Ripple created its own XRP cryptocurrency, with a market capitalization of approximately USD 22.8 billion, making it the sixth-largest token. The company has developed its own array of payment products based on blockchain technology to facilitate cross-border transactions using cryptocurrency tokens. Ripple currently serves consumers in over 55 countries spread over six continents.

The company announced that the acquisition would expand its enterprise offerings to include custody and the ability to issue, settle, and trade any tokenized asset. According to the company, this will enable Ripple to introduce new revenue models and significantly expand its feature set for banking and institutional clients.

Monica Long, Ripple President, said, “As the go-to provider for traditional finance companies looking to integrate crypto and blockchain solutions, Ripple is uniquely positioned to address the growing institutional crypto custody market, expected to reach nearly USD 10 trillion by 2030. Custody is a key facet of the infrastructure required for enterprise crypto services.”

Following the acquisition, Metaco will continue to operate as an independent brand and business unit under the leadership of its founder and chief executive, Adrien Treccani.

In addition to helping to diversify the company’s offerings, the acquisition of Metaco will assist the company in expanding its operations beyond the borders of the United States, where Ripple, along with most of the crypto industry, is facing increasing regulatory scrutiny.

In 2020, the U.S. Securities and Exchange Commission filed a lawsuit against Ripple and several executives, alleging that the company sold approximately USD 1.3 billion in unregistered XRP tokens. The company denied the allegations, stating that the credentials did not require registration.