• Ripple Labs has purchased a Swiss-based digital asset custody provider Metaco for $250 million.
• Metaco’s services will enable Ripple’s clients to custody, issue, and settle any type of tokenized asset.
• The news caused XRP prices to rise by 4.6%.
Ripple Acquires Institutional Digital Asset Custody Firm Metaco
Ripple Labs announced it is acquiring Swiss-based digital assets custody provider Metaco for $250 million. This move comes as a response to research showing that institutional investors plan to heavily incorporate crypto custody services into their business models within the next three years.
Benefits for Both Parties
Through the acquisition, both parties benefit: Metaco’s access to Ripple’s extensive customer base will “dramatically accelerate its growth trajectory.” Meanwhile, Ripple will be able to use Metaco’s tokenization technology which allows its blue-chip clients to custody, issue and settle tokenized assets.
XRP Price Surge After Acquisition News
The news of the purchase sent XRP upwards with the crypto asset trading at $0.439 at time of writing – a 4.6% increase during the last 24 hours.
Rippel Chief Executive Comments on Acquisition
Ripple chief executive Brad Garlinghouse said in a press release, “Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record.” He added that through Ripple’s financial position they would continue pushing their advantage in areas critical to crypto infrastructure development such as this recent acquisition of Metaco.
This nine-figure price tag indicates how serious Ripple is about providing its customers with the best possible crypto infrastructure solutions available today and further developing them in the future.