On Wednesday, US-based crypto network and XRP token owner Ripple announced the acquisition of Swiss-based crypto custody firm Metaco for $250 million. The firm stated that the purchase, published in a blog post, asserts Ripple’s adventure into the crypto custody market.
Ripple will now leverage the acquisition to expand its enterprise, providing customers the technology to custody, issue, and settle any type of tokenized asset, the crypto firm stated. The purchase also allows Metaco access to Ripple’s customer base, funding, and other resources to accelerate its growth.
“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,” Ripple’s CEO, Brad Garlinghouse, stated.
A Leap to Diversification
Ripple highlighted that the move was to diversify and tread new waters in the crypto industry. Hence, the XRP issuer wants to tap into the institutional crypto custody market.
According to Ripple, the institutional crypto custody market is expected to reach a staggering $10 trillion by 2030. The company’s recent research also showed that most global finance leaders at financial institutions and enterprises have plans to use crypto custody solutions in their businesses within the next three years, especially through a third-party provider.
Metaco’s main offering is Harmonize, an institutional standard for digital asset custody used by global custodians, large banks, and business cooperatives. The crypto custody firm already has a broad customer base, offering services in Germany, France, the United States, Hong Kong, and the Philippines, among others.
An Offshore Move?
According to the crypto firm, Ripple’s acquisition of Metaco is part of its plans to look beyond the US. The long legal battle between US regulators and Ripple has continued, with the XRP issuer winning against the Securities and Exchange Commission (SEC) in the Hinman document case yesterday.
With the slugfest already costing the crypto firm over $200 million, according to Garlinghouse, Ripple will be looking to avert such a dip by beginning to pitch its tents outside the United States.
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