Ripple acquires Metaco for $250 million to diversify services into crypto custody

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Blockchain technology company Ripple Labs Inc. has purchased Swiss digital asset custody and tokenization company Metaco SA for $250 million, the company announced in an announcement today.

Metaco provides a platform for cryptocurrency and digital asset custody infrastructure allowing institutions to securely store tokens. Its main service is Harmonize, which is an enterprise-level offering designed for banks, corporations, and other institutions to create and hold their own tokens.

Ripple has developed its own cryptocurrency XRP, which has a market capitalization of around $22.8 billion, making it the sixth largest token. The company has created its own suite of payment products based on blockchain technology to process cross-border payments using cryptocurrency tokens. Currently, Ripple serves many customers in more than 55 countries, across six continents.

The company said the acquisition will expand its own enterprise offerings to include custody and the ability to issue, settle and trade any type of tokenized asset. This will allow Ripple to open up new revenue models and significantly expand its feature set for banking and institutional customers, the company said.

As a go-to vendor for traditional financial companies looking to integrate crypto and blockchain solutions, said Ripple President Monica Long. Ripple is uniquely positioned to cater to the growing institutional crypto custody market, which is expected to grow to nearly $10 trillion by 2030. Custody is a key part of the infrastructure required for enterprise crypto services.

Metaco will continue to operate as an independent brand and business unit led by its founder and CEO Adrien Treccani after the acquisition.

In addition to helping diversify the company’s offerings, the acquisition of Metaco will also help the company expand its operations beyond the borders of the United States where Ripple, alongside much of the crypto industry, is currently under increasing regulatory scrutiny.

In 2020, the United States Securities and Exchange Commission sued Ripple and several executives alleging that the company illegally sold approximately $1.3 billion in XRP tokens representing unregistered securities. The company denied the charges, saying the tokens involved did not need to be registered.

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