Here comes a win in the bag for payment company Ripple Labs Inc which just acquired Switzerland-based crypto custody provider Metaco in a $250 million deal. According to a Ripple spokesperson, the acquisition was completed via a combination of Ripple equity and cash. Notably, this acquisition makes Ripple the sole shareholder of the Swiss crypto custodian.
With Metaco’s technology which facilitates storage and management of crypto assets, Ripple would be expanding its offerings to include custody, issue, and settlement of tokenized assets for institutional investors. Many firms including Citi, BNP Paribas, and Societe Generale’s digital asset arm have been able to move to new business models through the services offered by Metaco.
Ripple is bound to experience new opportunities once it diversifies into crypto custody. It is no longer news that investors have become more cautious to make crypto investments following the tumult faced in 2022 which was contributed by the implosion of several cryptocurrency exchanges including the collapse and bankruptcy filing of FTX.
These investors are now more concerned about where and how their crypto assets are stored. Brad Garlinghouse, Ripple’s Chief Executive Officer (CEO) believes that there would now be an increased demand for crypto custody amongst institutional investors.
According to the regulator, XRP is an unregistered security, a claim that is consistently debunked by Ripple and legal experts.
The lawsuit has been ongoing for more than two years and Garlinghouse has disclosed that in the end, Ripple’s defense cost against SEC would be around $200 million. Ripple is hopeful that the case would end soon and the victory would be in its favor.
“The silver lining for Ripple is that we are kind of at the end. Sometime in the six months, I expect a resolution (in the XRP lawsuit),” Garlinghouse said while speaking at the recently held Dubai Fintech Summit.
As a comforting sign, Ripple scored a recent winning as Judge Torres ordered that the Hinman emails cannot be sealed as demanded by the SEC.