Ripple announced the acquisition of Swiss-based crypto custody provider Metaco, marking the blockchain firm’s expansion across the growing institutional crypto custody market.
The deal, worth $250 million, surfaces as Ripple continues to defend against the long-drawn lawsuit from the US Securities and Exchange Commission.
Ripple Acquires Metaco
Ripple is expected to ramp up its enterprise offerings providing customers the technology to custody, issue, and settle any type of tokenized asset. At the heart of the deal, the two companies look to tap the growing institutional crypto custody market, which is forecasted to reach $10 trillion by 2030.
Metaco, on the other hand, will be able to leverage the San Francisco-based company’s established base of hundreds of customers and capital to address new demand and resources for its banking and institutional clients.
According to the official press releaseMetaco will continue to operate as an independent brand and business unit, while its founder and CEO, Adrien Treccani, will lead its operations.
Commenting on the development, Ripple CEO Brad Garlinghouse said,
“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.”
Reports also suggest that Ripple invested $250 million of cash off its own balance sheet to fund the acquisition, despite challenging market conditions as a result of higher interest rates and tighter funding conditions to mass layoffs and falling company valuations.
In a call to CNBC, Garlinghouse said the deal would help Ripple increase its overseas presence at a time when the SEC is taking stringent actions against major players in the digital asset industry.
Ripple Vs. SEC: Another Breakthrough
The lawsuit contested by Ripple has been dragging on for years. But in a significant development, a federal judge ruled that the SEC cannot seal documents connected to former official William Hinman’s 2018 speech on crypto and securities.
The documents in question consist of drafts and emails that indicated the agency did not consider Ether a security at the time. The lawyers representing Ripple have been fighting to learn more about how Hinman came to the conclusion a claim could impact XRP’s own classification.