US remittance system Ripple has acquired Metaco to leverage the company’s resources and establish itself in the emerging cryptocurrency custody market.
ripple acquired Switzerland-based Metaco for $250 million as part of an expansion of the network of transfers to institutional crypto custody. The acquisition also comes amid a positive ruling in favor of Ripple in its ongoing case with the Securities and Exchange Commission (SEC).
Ripple’s acquisition of Metaco supports the American technology platform’s belief in the crypto space. Talk to the decoderRipple’s head of custodianship Sagar Shah predicts that the institutional cryptocurrency custody market will reach $10 trillion by 2030. The company’s acquisition of Metaco now signals that Ripple is poised to thrive as the sole shareholder in the digital asset custodian. However, Metaco will continue operations as an independent brand.
📢 Today we announce that Metaco has become a part of @rippleuniting efforts in providing exceptional mission-critical software infrastructure solutions that enable organizations 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 is looking to expand its institutional offering to clients, using Metaco’s resources, while the Swiss firm expects to capitalize on Ripple’s well-established client base.
The CEOs of Ripple and Metaco comment on the merits of the acquisition
Weighing in on Metaco and the immediate benefits it brings to the table, Ripple CEO Brad Garlinghouse said:
“Metaco is a proven leading institutional digital asset custodian with an exceptional executive seat and a truly unparalleled client track record. Through the strength of our balance sheet and financial position, Ripple will continue to press our advantage in critical areas of cryptocurrency infrastructure. Bringing in Metaco is a must. tremendously for our growing product range and expanding our global footprint.”
Meanwhile, Metaco founder and CEO Adrien Treccani said that Ripple shares his company’s passion for helping organizations thrive with digital assets. “We are excited to be teaming up with the Ripple team,” Treccani said, adding that Metaco will benefit from remittance network resources.
The Metaco CEO noted that Ripple’s size and market power would accelerate targets. Treccani said Metaco will continue to serve its customers’ institutional demand with “the utmost excellence in delivery.” The Swiss company provides organizations with the required tokenization tools and custodial 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.
The future of digital assets is tokenization
Ripple views its acquisition of Metaco as a long game for supremacy in the digital asset space. The currency exchange and remittance network hopes to capitalize on the explosive crypto market growth by combining forces with the Swiss platform. According to Sagar Shah, the chief custodian of Ripple, the crypto assets held could exceed $10 trillion by the end of the decade. Most of these assets will be driven by institutional adoption, Shah added. In an email to Decrypt, the Ripple CEO described the acquisition as a “natural progression” to serve customers’ needs. These services include the ability to hold, issue and settle all token assets while benefiting from a new revenue stream for the company.
Powerful investment firm BlackRock also reiterated Ripple’s view of the token’s future. In early December, CEO Larry Fink described Securities’ transformation into a “next-generation market” token.
Elsewhere, Citibank CFO Ronit Ghose said that tokenization could significantly raise the value of the blockchain by 2030.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.