Adrien Treccani, the CEO and founder of Metaco, will retain leadership as the independent business unit continues to operate.
On Wednesday, blockchain firm Ripple announced its acquisition of Swiss-based crypto custody provider Metaco for $250 million, as stated in a company statement.
This acquisition enables Ripple to enhance its offerings by incorporating Metaco’s technology for custody, issuance, and settlement of tokenized assets. Metaco provides customers with crucial and secure custody infrastructure, empowering institutions to scale their business models in the crypto economy.
Ripple stated that diversifying into custody solutions will unlock new revenue opportunities. Moreover, this acquisition aligns with Ripple’s strategy to expand its presence beyond the United States, navigating the uncertain regulatory landscape in the country.
It’s worth noting that Ripple and some of its executives faced a lawsuit in 2020 from the U.S. Securities and Exchange Commission (SEC) regarding the unregistered sale of around $1.3 billion worth of XRP tokens. Ripple’s CEO, Brad Garlinghouse, estimated that the legal battle would cost the company approximately $200 million, and he cautioned crypto entrepreneurs about establishing businesses in the U.S. However, a judge in the Ripple lawsuit recently stated that the regulator cannot seal documents related to former official William Hinman’s 2018 speech on crypto and securities.
The acquisition of Metaco was financed through a combination of cash and Ripple equity, according to a spokesperson from the company.
Brad Garlinghouse, CEO of Ripple, expressed confidence in Metaco, highlighting its exceptional executive team and unmatched customer track record. Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent business unit under the leadership of its founder and CEO, Adrien Treccani.