Blockchain firm Ripple has acquired Swiss crypto custody player Metaco in a $250 million deal.
The acquisition marks Ripple's first foray into a growing institutional crypto custody market that the firm says could hit $10 trillion by 2030.
Metaco's main offering, Harmonize, has been chosen by major global custodians, top-tier banks such as Societe Generale, and corporates. The firm's technology is currently offered across various jurisdictions, including Switzerland, Germany, Turkey, France, the United Kingdom, the United States, Singapore, Australia, Hong Kong and the Philippines.
It will operate as an independent brand and business unit led by CEO Adrien Treccani while gaining access to Ripple's base of hundreds of customers as well as fresh capital.
For Ripple, the acquisition boosts in position outside of the US at a time of growing regulatory uncertainty in its home market. The firm has spent several years fighting an SEC lawsuit alleging the unregistered sale of approximately $1.3 billion worth of XRP tokens. That tussle will cost Ripple about $200 million, according to CEO Brad Garlinghouse.
Says Garlinghouse of the Metaco deal: “Through the strength of our balance sheet and financial position, Ripple will continue pressing our advantage in the areas critical to crypto infrastructure. Bringing on Metaco is monumental for our growing product suite and expanding global footprint.”