Ripple Acquisition of Metaco Boosts Crypto’s Institutional Adoption
• Ripple has acquired Swiss-based digital assets custody provider Metaco for $250,000,000.
• The acquisition will provide Ripple’s clients with tokenization technology and access to a larger customer base.
• The news of the purchase sent XRP upwards, with the crypto asset trading for $0.439 at time of writing.
Ripple Acquires Institutional Digital Asset Custody Firm
Payments firm Ripple has acquired Swiss-based digital assets custody provider Metaco for a nine-figure price tag of $250 million. The move is in response to research indicating that institutional investors plan to heavily incorporate crypto custody services into their business models within the next three years.
Advantages for Both Parties
The fusion of the companies benefits both parties as Metaco’s services, which include tokenization technology, would allow Ripple’s blue-chip clients to custody, issue, and settle any type of tokenized asset. Additionally, Metaco’s access to Ripple’s huge base of customers will “dramatically accelerate its growth trajectory.”
Ripple Chief Exec’s Statement
Ripple chief executive Brad Garlinghouse said in a press release: “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.”
Impact on XRP Price
News of the purchase sent XRP upwards. The crypto asset is trading for $0.439 at time of writing, a 4.6% increase during the last 24 hours.
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