Ripple, the creator of the well-known payments network and XRP token, has recently acquired Swiss digital asset custodian and tokenization provider Metaco for a staggering $250 million. This acquisition aims to broaden Ripple’s enterprise services to include custody, issuing, and settling of tokenized assets.
Many see this acquisition as a significant step forward for Ripple, as it will greatly accelerate Metaco’s growth trajectory. The company will now have access to Ripple’s established customer base, capital to address new demands, and resources to continue delivering on its commitment to banking and institutional clients. Ripple’s research projects that the institutional crypto custody market will skyrocket to $10 trillion by 2030. Furthermore, the company’s research suggests that most global finance leaders at financial institutions plan to use crypto custody solutions within the next three years.
Examples of such institutions include BNY Mellon, which has announced its crypto custody management plans, and Nasdaq, which plans to launch crypto custody services in the second quarter. Adrien Treccani, Founder and CEO at Metaco, commented on the deal, stating that it will enable them to leverage Ripple’s market strength and scale, helping them achieve their goals faster and deliver more value to their clients.
However, skeptics might question the ability of Ripple to successfully merge with a company like Metaco, taking into account the differing company cultures and potential integration issues that might arise during the acquisition process. Metaco’s primary offering, Harmonize, is an institutional standard for digital asset custody and tokenization infrastructure, and the firm claims that it’s used by major financial institutions. Founded in 2015, Metaco has managed to raise $20 million through four funding rounds before the acquisition announcement on May 17.
In a statement, Ripple’s CEO Brad Garlinghouse highlighted the company’s ambition to press ahead in the critical areas of crypto infrastructure. Ripple’s acquisition of Metaco signifies the growing importance of digital asset custody and tokenization in the financial industry. Investors and enthusiasts alike will be closely watching the progress of this merger and anticipating the new opportunities and challenges it may create.
As Ripple diversifies its portfolio and strengthens its presence in the market, it showcases the increasing interest of financial institutions in cryptocurrency and digital asset management. While the acquisition of Metaco
Source: Cointelegraph
