Ripple, the technology company behind XRP, announced that it has acquired a Swiss-based cryptocurrency company.
$ 250 million crypto investment from Ripple
Ripple has acquired Swiss-based crypto custody company Metaco for $250 million, Reuters reported.
Metaco produces technology that allows financial institutions to store and manage their cryptocurrencies. Its clients include Citi, BNP Paribas and the digital asset arm of Societe Generale.
Today, we are proud to announce Ripple has acquired @metaco_sa, becoming the sole shareholder of the Swiss-based provider of digital asset custody and tokenization technology.
Learn more: https://t.co/GrI3u13iDT
— Ripple (@Ripple) May 17, 2023
In the press release, Ripple reported that the acquisition is aimed at expanding its international footprint and range of services. The acquisition comes amid the company’s ongoing legal battle with the SEC. Also, the crypto market as a whole is facing a host of challenges, from higher interest rates and tighter financing terms to mass layoffs and declining company valuations.
“Biggest deal we’ve seen since last year”
Ripple CEO Brad Garlinghouse told CNBC that the investment is the biggest deal of recent times. Garlinghouse says that Ripple has invested $250 million in cash from its own balance sheet to finance the acquisition.
“At a time when others are closing their doors or facing layoffs, I think this is a really important signal for the industry. It is also a sign that Ripple is in a strong position – we will play offensively,” he adds.
Thrilled to welcome @metaco_sa and CEO @AdrienTreccani to @Ripple! As Ripple expands into custody – a key part of crypto infrastructure – we’ll be able to support customers with the technology to custody, issue, send and settle any type of tokenized asset. This is massive. 1/3 https://t.co/37laWgh0VL
— Brad Garlinghouse (@bgarlinghouse) May 17, 2023
Ripple CEO stated that at a time when the SEC is taking drastic measures against the company, the deal will help the company increase its presence abroad. Following the lawsuit, the company faced major regulatory uncertainty. Ripple rejects the SEC’s claim, opposing that XRP should be considered a security.
About Metaco
Founded in Switzerland in 2015, Metaco is a company that provides services aimed at helping financial institutions securely store, trade, issue and manage cryptocurrencies. Ripple CEO Garlinghouse states that the deal with Metaco is a strategic opportunity for the company. He also stated that the importance of storing crypto securely has increased as financial institutions want to get involved in the crypto industry.
Final months for Ripple-SEC lawsuit
Crypto companies are hoping the regulator will review their policies as they fight the SEC. Ripple CEO Garlinghouse stated that they expect the SEC case to be concluded within a few months. SEC Chairman Gensler emphasized that they will continue to take aggressive measures in the crypto space.
As Kriptokoin.com, we have included the latest developments from the case in this article.
But some industry executives think the regulator’s approach is flawed. At the same time, it demands a clear regulatory framework from the US Congress. By acquiring Metaco, Ripple aims to increase its holdings and faster transfers to its customers. Treccani, CEO of Metaco, stated that they will achieve their goals by taking advantage of Ripple’s scale and market power. He also stated that they will continue to serve customers with excellence.
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