Metaco will keep working independently with its own team, led by CEO and founder Adrien Treccani.
Ripple, a blockchain company, has bought a Swiss crypto storage company called Metaco for $250 million, according to a statement released on Wednesday.
By acquiring Metaco, Ripple will be able to expand its services and use their technology to securely store, distribute, and settle digital assets. Metaco’s custody infrastructure is vital for customers, especially institutions, to grow their business and adopt new models within the cryptocurrency industry.
Ripple mentioned that entering the custody solutions market will open up new ways to generate income. They also stated that acquiring Metaco is a step towards expanding their presence beyond the United States, where regulations can be uncertain, as part of their strategic plan.
Last year, Ripple and a few of its leaders were sued by the U.S. Securities and Exchange Commission (SEC) for selling around $1.3 billion worth of XRP tokens without proper registration.
According to Ripple CEO Brad Garlinghouse, the legal fight is expected to cost the company approximately $200 million. He also advised crypto entrepreneurs to be cautious about starting their businesses in the United States. In the ongoing Ripple lawsuit, the judge ruled on Tuesday that the regulator is not allowed to keep documents related to a speech given by former official William Hinman in 2018 about cryptocurrencies and securities confidential.
As per a company representative, the purchase was funded using a mix of cash and Ripple stocks.
Brad Garlinghouse, the CEO of Ripple, expressed that Metaco has a strong reputation in providing custody services for digital assets to institutional clients. He commended their exceptional leadership team and the outstanding record they have in serving customers.
Ripple will now own the entire share of Metaco, but Metaco will continue operating independently with its own team. Adrien Treccani, the founder and CEO of Metaco, will continue to lead the company as before.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
