Blockchain company Ripple has recently announced its acquisition of ‘Metaco’, a Swiss firm specializing in secure digital asset custody. The move is aimed at expanding Ripple’s international presence and diversifying its range of services. Ripple Expands Its Reach with Acquisition of Swiss Firm Metaco.
Ripple’s Acquisition of Metaco to Expand International Presence and Diversify Services
The acquisition comes at a significant time for Ripple. As the company continues to face a lawsuit from the United States Securities and Exchange Commission (SEC). Ripple remains confident in its position and sees this acquisition as a strong signal to the industry that it is in a favorable position to make strategic moves.
Funding the Acquisition: Ripple Utilizes $250 Million from Cash Reserves
To fund the acquisition, Ripple used $250 million from its cash reserves. Ripple CEO Brad Garlinghouse highlighted the importance of the deal. Particularly in a market where other companies are facing closures and layoffs. Garlinghouse sees this acquisition as a statement that Ripple is in a strong position and is ready to take proactive measures.
The acquisition of Metaco is expected to bolster Ripple’s presence in international markets. Especially as the SEC takes stringent actions against major players in the industry. Ripple has been entangled in regulatory uncertainty due to the SEC’s lawsuit Which alleges that XRP, a cryptocurrency associated with Ripple, should have been registered as a security.
Metaco, founded in Switzerland in 2015, provides a range of services to help financial institutions securely store, trade, issue, and manage digital currencies. The company has a strong track record of partnering with banks and payment providers, making it a strategic fit for Ripple. However, amidst these challenges, Ripple has expanded its reach by acquiring a Swiss firm Metaco.
Secure custody of digital assets has become a critical concern for financial institutions entering the crypto industry, following incidents such as the collapse of FTX and other prominent crypto platforms. Metaco’s client roster includes major financial firms like Citi, BNP Paribas, BBVA, and Societe Generale.
Ripple and the SEC expect to conclude their legal battle in the coming months. CEO Brad Garlinghouse anticipates a decision within two to five months. Gary Gensler, the chair of the SEC, has expressed the regulator’s commitment to aggressive enforcement actions in the crypto space. Emphasizing the application of existing securities laws to the industry.
Ripple now holds full ownership of Metaco, although the latter will continue to operate independently. Adrien Treccani, CEO of Metaco, expressed enthusiasm about the acquisition, highlighting the opportunity to leverage Ripple’s scale. Market strength to better serves clients and meet institutional demand.
As Ripple expands its international footprint and navigates the legal landscape. The acquisition of Metaco positions the company to strengthen its presence in the crypto industry. Also, deliver enhanced services to its growing client base.