Ripple (XRP) bulls are struggling to regain momentum after media on June 30 claimed that Citigroup may reconsider its partnership with Metaco – a company that Ripple Labs recently acquired for $250 million.
Bulls lose momentum
Ripple’s native XRP token had been on a stable pump for nearly two months. It hit a high of $0.54 on multiple positive developments and industry expectations that its case with the SEC would end favorably.
However, the momentum began to wane in mid-June and the token fell to $0.31 on June 14 following the SEC’s crackdown on the crypto industry in the United States via lawsuits against Binance.US and Coinbase.
The bulls managed to regain some of the momentum last week and were on track to reclaim the previous high of $0.54 before news from Citigroup led to a strong sell-off – causing the price to drop to lows. $0.42, based on data from CryptoSlate.
Since then, the token has rallied somewhat to $0.47, at press time, but is struggling to push further as the bears are now firmly in control.
Citigroup will probably abandon Metaco
Bloomberg News reported On June 30, Citigroup launched a review of its partnership with crypto custodian Metaco and could potentially replace the company as a provider.
People familiar with the matter told the newswire that the Wall Street giant had already begun the search for a new supplier. According to the report, it is unclear if the review is related to Ripple.
Citigroup between a partnership with Swiss company Metaco in June 2022 and said the latter would help it “develop and pilot” digital asset custody capabilities.
The lender said at the time that it intended to integrate Metaco’s Harmonize platform into its own services to offer digital asset custody and settlement services to its customers.
The partnership also aimed to develop tokenization and custody solutions for traditional assets like securities.
Metaco also counts major European banks among its partners, including Société Générale and BNP Paribas. The latter confirmed that his partnership with Metaco remains “operational”.
Metaco, Ripple and Citigroup did not respond to a request for comment at press time.
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