Ripple recently announced the acquisition of Swiss company Metaco. Specialising in cryptocurrency storage and security, its expertise will be used to expand the Californian firm’s range of products for institutional customers. Against a backdrop of increasing competition, Ripple’s operation is designed to increase its influence internationally.
Ripple acquires Metaco
Over the next few years, the cryptocurrency market is likely to grow exponentially. Against this backdrop, Ripple is looking to expand its range of services with the acquisition of Metaco, a company specialising in digital asset custody and tokenisation technologies
Today, we are proud to announce Ripple has acquired @metaco_sa, becoming the sole shareholder of the Swiss-based provider of digital asset custody and tokenization technology.
Learn more: https://t.co/GrI3u13iDT
– Ripple (@Ripple) May 17, 2023
“Today, we are proud to announce that Ripple has acquired Metaco, becoming the sole shareholder of the Swiss company that provides storage and tokenization technologies for digital assets. “
At $250 million, this acquisition is a significant investment for the Californian company, which wants to extend its range of products to its institutional customers.
However, the takeover does not imply a radical change in Metaco’s management: its founder Adrien Treccani, a PhD student in institutional finance, is maintaining his role as CEO of the Swiss company founded in 2015.
As Ripple CEO Brad Garlinghouse points out, the two companies will be working hand in hand to increase not only the quality of the solutions they offer, but also their respective influence internationally. In this way, Ripple is seeking to maintain its leading position with institutional clients.
The door is open to new services
With this agreement, institutional clients will be able to entrust the storage and security of their digital assets to Ripple. The American company has more than 10 years’ experience in the cryptocurrency sector. Its main areas of focus are:
- Cross-border payments;
- central bank digital currencies (CBDCs);
- liquidity management;
- and asset tokenisation.
In addition, this acquisition is part of a continuous improvement of its products by taking advantage of the Swiss company’s secure infrastructure. Metaco’s flagship solution, Harmonize, is currently used by leading banks, businesses and financial institutions.
The company’s services are not limited to cryptocurrency custody. From trading to staking, via the use of decentralised applications (dApps), Metaco is one of the leaders in its field. As Adrien Treccani points out, the acquisition of the firm is a positive step in its development:
“Our mission is to provide the best possible service to our customers.
Our mission has always been to enable institutions to thrive in the digital asset economy using our core infrastructure and expertise, and we are delighted to partner with the Ripple team, who share this passion. This agreement will allow Metaco to leverage Ripple’s scale and market strength to achieve our goals and deliver value to our customers at a faster pace. “
By integrating Metaco into its group, Ripple is looking to widen the distance that separates it from its competitors. Indeed, New York bank BNY Mellon, valued at $32 billion, already offers custody of digital assets for US asset managers.
Similarly, back in March, NASDAQ announced plans to launch a cryptocurrency custody service for Ethereum (ETH) and Bitcoin (BTC) from late spring 2023. As a result, Ripple must remain on guard to maintain its position in its market, while focusing on its legal dispute with the Securities and Exchange Commission (SEC), which has dragged on since 2020.
