Ripple acquires crypto custodian Metaco for $250 million

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Ripple announced on Wednesday that it has acquired Metaco, a crypto custodian that caters to institutional investors, for $250 million.

Best known for its association with the cryptocurrency XRP, Ripple will become the sole shareholder of Metaco, which will continue to operate independently under founder and CEO Adrien Treccani, according to a statement announcing the deal.

Adding these capabilities to Ripples’ already growing product solutions means we can continue to support customers as they seek to use crypto and blockchain for real-world use cases, said Monica Long, President. of Ripples, in a statement.

Ripple, which is currently battling the Securities and Exchange Commission over the agencies’ claim that XRP is an unregistered security, declined to provide additional details about the acquisition when contacted by Fortune.

The deal is further proof that the payments company, which has undergone many facelifts in its decade-plus history, could find its niche.

Established in 2012, Ripple and supporters of its associated cryptocurrency XRP have made a number of arguments to justify the business and usefulness of cryptocurrencies, including attempted partnerships with major banks, gambling in the remittance market and now a hub for cross-border payments.

It’s the latest use case the company has finally found ground with, with Long previously telling Fortune that 2021 and 2022 were banner years for the company due to the growing popularity of its cross-border payment platform. , Ripple Net.

Ripple Net’s growth coincides with the company’s recent transformation into a rallying point for the crypto industry after the SEC filed suit against it and two executives. The lawsuit could have wide ramifications if the SEC claim that XRP is a security as opposed to a commodity is confirmed.

Brad Garlinghouse, CEO of Ripples, said the legal battle with the SEC cost the company around $200 million. He has previously said he expects a decision on the lawsuit this year.

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