Continuing its legal struggle with the SEC, Ripple continues to make its moves within the scope of its growth strategy.
According to Reuters, US crypto company Ripple has acquired Swiss-based crypto custody company Metaco for $ 250 million.
Ripple stated that the acquisition of Metaco is a way to diversify its custody solutions and will bring new revenue opportunities, noting that the acquisition is part of Ripple's strategy to expand its presence beyond the US and the uncertain regulatory environment.
Ripple also stated in its statement that more than half of the $250 million purchase price was paid in cash and the remainder as equity.
Ripple CEO Brad Garlinghouse stated that he expects the demand for crypto custody services from institutional investors to increase and said the following about the acquisition of Metaco:
“By focusing on crypto infrastructure, you don't suffer the consequences of crypto winters and if you're solving a clear problem at scale for enterprise clients, there will be demand there.
In this context, while US regulators accelerate their sanctions against crypto companies, the fact that Metaco is based in Switzerland increases the attractiveness of the company for US customers.
Compared to the USA, the rules of the road in other markets are clear and allow companies to invest, which also adds to the attractiveness.
At this point, Metaco is a proven leader in enterprise digital asset custody, with an outstanding executive branch and a truly unique client history.”
Although Metaco was acquired by Ripple and is the sole shareholder of Metaco, the Metaco company will continue to operate as an independent brand. Its founder and CEO, Adrien Treccani, will continue to lead the business.
*Not investment advice.