HomeCryptoCrypto news: Ripple (XRP) acquires Metaco for $250 million

Crypto news: Ripple (XRP) acquires Metaco for $250 million

Recent major news for Ripple (XRP): the leader in blockchain and crypto solutions will acquire Metaco, a Swiss-based provider of digital asset custody and tokenization technology, for $250 million. 

With this acquisition, Ripple will expand its business offerings, providing customers with the technology to custody, issue and liquidate any type of tokenized asset.

Ripple (XRP) and the purchase of Metaco to address the crypto custody market 

As anticipated, Ripple (XRP), a leading crypto company, recently confirmed the acquisition of custody service provider Metaco for $250 million

In this way, Ripple addresses the growing institutional cryptocurrency custody market, which is expected to reach $10 billion by 2030. 

Not surprisingly, diversification into custody solutions is a cornerstone of Ripple’s corporate and product strategy, providing new revenue opportunities for the company.

Ripple and Metaco share a strong ‘cryptographic DNA,’ top-tier institutional clients, and a long history of working with regulated entities to create secure enterprise-grade solutions. 

Through this, Metaco will significantly accelerate its growth trajectory through access to Ripple’s established base of hundreds of customers, capital to meet new demand, and resources to continue its commitment to banking and institutional customers.

Brad Garlinghouse, CEO of Ripple, said the following about the acquisition: 

“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.”

Best known for its flagship payment products, Ripple was the first company to address multibillion-dollar weaknesses in cross-border payments using blockchain and cryptocurrency. 

The company focused on solving the most difficult problems, such as building a blockchain-enabled payment infrastructure from scratch, before expanding its product offerings to address new use cases such as cash management and tokenization, including central bank digital currencies (CBDCs). 

Ripple becomes Metaco’s sole shareholder 

On the other hand, Metaco offers a secure and versatile mission-critical custody infrastructure for institutions to scale new business models in the crypto-economy. 

Its core Harmonise offering is the institutional standard for digital asset custody and tokenization infrastructure, chosen by the world’s largest global custodians, top-tier banks, financial institutions and corporations. 

Metaco’s technology solutions are currently offered in various jurisdictions, including Switzerland, Germany, Turkey, France, the United Kingdom, the United States, Singapore, Australia, Hong Kong and the Philippines, among others.

In fact, Monica Long, president of Ripple, stated the following. 

“As the go-to provider for traditional finance companies looking to integrate crypto and blockchain solutions, Ripple is uniquely positioned to address the growing institutional crypto custody market, expected to reach nearly $10T by 2030. Custody is a key facet of the infrastructure required for enterprise crypto services. Adding these capabilities to Ripple’s already growing product solutions means we can continue to support customers as they look to utilise crypto and blockchain for real-world use cases across all phases of adoption.”

Adrien Treccani, founder and CEO of Metaco, said instead: 

“Our mission has always been to enable institutions to thrive in the digital asset economy with the help of our core infrastructure and expertise, and we are delighted to join forces with the team at Ripple, who share that passion. This deal will enable Metaco to leverage Ripple’s scale and market strength to reach our goals and deliver value to our clients at a faster pace. We look forward to continuing to serve unprecedented levels of institutional demand with the utmost excellence in delivery, as our clients have come to expect.”

In summary, Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent brand and business unit led by founder and CEO Adrien Treccani.

Price of crypto Ripple (XRP) reacts to lawsuit against the SEC

In a recent significant victory for Ripple, District Court Judge Analisa Torres denied the SEC’s motion to seal Hinman’s speech documents.

Specifically, Judge Torres stated that the documents were judicial records subject to a strong presumption of public access

Hence, he ruled that Hinman’s speech documents would reasonably influence the court’s decision on the motion, thus making them important evidence.

The court’s decision to admit Hinman‘s speech into evidence favored Ripple, leading to a positive market response. In fact, following the news, the price of Ripple’s native crypto, XRP, surged by 5.35% and a significant increase in trading volume. 

This surge suggests a return of investor enthusiasm in XRP. Indeed, the cryptocurrency managed to break through key resistance levels and reached an intraday high of $0.44.

However, although the bullish momentum is favorable, investors should be cautious about profit-taking following the price rise because it could trigger a selling spree and potentially cause Ripple’s price to retrace some or all of the gains made on 17 May. 

The high RSI value of 81 suggests a looming pullback. Traders should be prepared for a possible correction in Ripple’s price, with the worst-case scenario of a revisit of the lows of 16 May around $0.420.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.