Ripple Acquires Crypto Custodial Firm Metaco for $250M
On Wednesday, the prominent blockchain firm Ripple acquired Metaco at a buyout deal of $250 million. After signing the acquisition deal, Ripple allowed the Swiss-based crypto custodial provider Metaco to undertake specific operations.
The Metaco team will be allowed to continue operating independently and be grouped as Ripple’s key shareholder. The successful acquisition deal allows Ripple to provide institutional clients with tokenization tools and other custodial digital assets crucial in supporting new business models to survive the vibrant crypto market.
Among the digital custodial services provided by Metaco include Harmonize, a digital asset commonly used by institutional investors and financial institutions.
Ripple Buys Metaco
For years the Metaco team has provided cutting-edge services to best-performing companies, including CitiGroup, Bank BNP Paribas, and Union Bank. In light of the May 17 Metaco acquisition deal, Ripple will integrate additional features to the existing institutional offering in the coming days.
The blockchain company plans to introduce custodial services, allowing users to settle payment for all tokenized digital assets more effortlessly. The report confirmed that the additional feature will be provided to Ripple’s regular customers.
Undeniably, the Ripple team stated that acquiring Metaco would allow the blockchain company to broaden its geographical presence outside the US. A follow up report from the Ripple group reveals that the firm will leverage its financial and human resources to support Metaco in attaining the desired results.
In their statement, the blockchain firm revealed that it has been conducting extensive research on crypto custodial services for a long time. A review of Ripple’s existing resources revealed that the company is in good financial health to support the adoption of crypto custodial.
Significance of Acquiring Metaco
Commenting on the Ripple report, the Metaco representative expressed delight in collaborating with the blockchain firm. He argued that for years the Ripple team adopted a proactive approach suitable for working with the new financial systems and supporting compliance with global policies.
The representative confirmed that the $200 million for the Metaco acquisition would be raised from Ripple cash and equity. Additionally, the Metaco team mentioned that its acquisition was the right decision made by the company management to stimulate business growth.
Elsewhere the head of custodial services at Ripple, Sagar Shah, noted that the blockchain firm would remain resilient in pursuing effective long-term strategies that will yield the desired results amid the ongoing bumpy crypto winter.
A report from the chief executive of Ripple, Brad Garlinghouse, acknowledged the efforts made by Metaco to provide institutional customers with digital asset custodial services. In his address, Garlinghouse applauded the Metaco support team for providing exceptional customer service.
Will Ripple Acquisition Support Adoption of Crypto Custodial?
A recent study by Current Trends revealed that increase in adoption of custodial services by institutional investors will generate a revenue of over $30 trillion in 2030. He added that the involvement of Ripple in the provision of custodial service would increase the company’s revenue and boost its market dominance in the crypto space.
In his concluding remarks, Shah applauded the commendable achievement of the tokenization tools and technology. Shah’s statement supports a report issued by the chief executive of Blackrock in 2022, who argued that tokenization technology has massive technology to transform the next-generation market.
Ripple Face SEC Charges
Before this, an official from Citi Bank, Ronit Ghose, labeled the tokenization technology as a “killer use case.” Ghose predicted that by 2030 the tokenization technology would increase by 80 times to reach a revenue of $4 trillion.
Besides the efforts made by Ripple to cement its market position in the crypto sector, the blockchain firm got in trouble with the Securities and Exchange Commission in 2020. The SEC accused Ripple of selling unregistered digital assets worth over $1.3 billion that violated US securities regulations.
After lengthy court proceedings, Garlinghouse, estimated that the total litigation cost would amount to $200 due to current regulatory pressure in the US. The Ripple team has reportedly worked closely with crucial crypto and blockchain technology players to improve the digital payment system.
At press time 11:38 UTC, Ripple native token XRP is trading at $0.4678, a 4.90% increase in a day. The XRP trading volume dipped by 22.05% to reach $1,227,714,882 in a day.
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