Ripple has announced the acquisition of Swiss crypto custody provider Metaco, marking the blockchain company’s expansion into the growing institutional crypto custody market.
The deal, worth $250 million, comes to the surface as Ripple continues to defend against the long-running lawsuit from the U.S. Securities and Exchange Commission.
Ripple acquires Metaco
Ripple is expected to expand its enterprise offerings by providing customers with the technology to hold, issue, and settle any type of tokenized asset. At the heart of the deal, the two companies seek to tap into the growing institutional crypto custody market, which is expected to reach $10 trillion by 2030.
Metaco, on the other hand, will be able to leverage the San Francisco-based company’s established base of hundreds of customers and capital to meet new demand and resources from its banking and institutional customers.
According to the official press releaseMetaco will continue to operate as an independent brand and business unit, while its founder and CEO, Adrien Treccani, will lead its operations.
Commenting on the development, Ripple CEO Brad Garlinghouse said:
“Metaco is a recognized leader in institutional digital asset custody, with an exceptional management team and a truly unrivaled client track record. With our strong balance sheet and financial position, Ripple will continue to drive our edge in critical areas of crypto infrastructure. The arrival of Metaco is monumental for our growing product line and expanding global footprint.
Reports also suggest that Ripple invested $250 million in cash on its own balance sheet to fund the acquisition, despite tough market conditions due to higher interest rates and tighter financing terms due to mass layoffs and falling valuations of companies.
In an appeal to CNBC, Garlinghouse said the deal would help Ripple grow its overseas presence at a time when the SEC is taking tough action against major players in the digital asset industry.
Ripple against. SEC: another breakthrough
Ripple’s disputed lawsuit has been dragging on for years. But in a significant development, a federal judge has ruled that the SEC cannot seal documents related to former civil servant William Hinman’s 2018 speech on crypto and securities.
The documents in question consist of drafts and emails indicating that the agency did not consider Ether a security at the time. Lawyers representing Ripple have been battling to learn more about how Hinman came to the conclusion that a claim could impact XRP’s own classification.
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