Ripple purchased Swiss cryptocurrency custody startup Metaco for $250 million in cash and shares. Ripple will now custody, issue, and settle any tokenized asset.
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record,” Ripple CEO Brad Garlinghouse said. Ripple will maintain its lead in crypto infrastructure through its strong balance sheet and finances. Metaco’s addition boosts our product line and global reach.
Ripple runs the XRP-based Ripple payment protocol. In addition, Ripple helps traditional finance firms incorporate crypto and blockchain. Despite being an independent organization, Ripple holds a lot of XRP tokens.
Due to XRP token sales, the SEC sued Ripple in 2020. The SEC said XRP should have been registered as a security. Ripple and a few executives made about $1.38 billion selling XRP tokens.
Ripple announced their diversification today. Metaco offers institutional customers enterprise-grade custody, orchestration, trading, and more.
After today’s acquisition, Metaco will remain an independent brand and business unit with a new owner. Ripple may leverage its financial sheet to develop a portfolio of cryptocurrency-focused startups to recover from the SEC fight.