Ripple has just announced that it has bought Swiss crypto custody firm Metaco for $250million.
Metaco tokenisation technology enables financial companies to store their digital assets, with BNP Paribas, Citi and Société Générale among the firm’s clients.
According to the Reuters report, Ripple CEO Brad Garlinghouse said he expected increased crypto custody service demand from institutional investors.
“By focusing on the infrastructure… you’re not really subject to the same gyrations of the crypto winters,” he said. “If ultimately you’re solving a clear problem at scale for these customers, there’s going to be demand there.”
As the US is facing greater crypto scrutiny, Garlinghouse added that there was appeal in Metaco being based in Switzerland with non-US employees. “The rules of the road in other markets compared to the United States are clear and it’s that clarity of rules that allows companies to invest,” Garlinghouse said.
Ripple say that half of the $250m purchase was bought with cash and the remaining in equity.
In the company’s official statement, Garlinghouse added: “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.”
Ripple vs the SEC
For three years, Ripple has been locked in an ongoing legal war with the United States Securities and Exchange Commission over whether or not XRP is a security.
The final outcome will be pivotal, with massive repercussions for the whole crypto market. All eyes will be on the verdict, which could be reached very soon, according to some market experts.
Ripple (XRP) is the market’s sixth-biggest crypto, with a market cap of $23.2bn and a circulating supply of 51,837,820,505.
At the time of writing, the price of XRP is trading at $0.4468 – an increase of 5.88% in the past 24 hours.