Ripple has acquired Swiss-based crypto custody provider Metaco in a deal worth $250 million, as the blockchain firm expands into the growing institutional crypto custody market.
The acquisition is expected to enable Ripple to provide enterprise offerings to its customers, facilitating custody, issuance, and settlement of any tokenized asset. The two companies aim to tap into the growing institutional crypto custody market, forecasted to reach $10 trillion by 2030.
Metaco will leverage Ripple’s established customer base and capital to address new demand and resources for its banking and institutional clients. It will continue to operate independently as a business unit with its founder and CEO, Adrien Treccani, leading operations.
Despite challenging market conditions, Ripple invested $250 million of cash off its own balance sheet to fund the acquisition, which helps the company increase its global presence in the face of regulatory action by the US Securities and Exchange Commission (SEC).
Meanwhile, the SEC lawsuit against Ripple over the sale of unregistered securities has been dragging on for years. In a significant development, a federal judge ruled that the SEC cannot seal documents related to former official William Hinman’s 2018 speech on crypto and securities. The lawyers representing Ripple have been seeking information about how Hinman’s remarks could impact XRP’s classification.
Ripple’s CEO Brad Garlinghouse said:
“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.”