Blockchain firm Ripple has acquired Swiss-based crypto custody provider Metaco for $250 million, the company said in a statement on Wednesday.
The purchase will allow Ripple to expand its offerings by incorporating the technology to custody, issue, and settle tokenized assets. Metaco offers customers crucial and secure custody infrastructure, allowing institutions to scale new business models in the crypto economy.
Diversifying into custody solutions will bring new revenue opportunities, Ripple said, adding that the acquisition is part of its strategy to broaden its presence beyond the U.S and its uncertain regulatory landscape.
In 2020, Ripple and some of its executives faced a lawsuit from the U.S. Securities and Exchange Commission regarding the unregistered sale of approximately $1.3 billion worth of XRP tokens.
Ripple CEO Brad Garlinghouse recently estimated that the legal battle will cost the company around $200 million, while also cautioning crypto entrepreneurs against establishing their businesses in the U.S. While the judge residing on the Ripple lawsuit, said on Tuesday that the regulator cannot seal documents tied to former official William Hinman’s 2018 speech on crypto and securities.
According to a company spokesperson, the acquisition was financed through a combination of cash and Ripple equity.
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive branch and a truly unmatched customer track record,” said Brad Garlinghouse, CEO of Ripple.
Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent business unit led by its founder and CEO Adrien Treccani.
Edited by Parikshit Mishra.