Blockchain firm Ripple has acquired the Switzerland-based cryptocurrency custody platform Metaco for $250m.
With the acquisition made in cash and Ripple equity, the business will expand its offering by including the technology to custody, issue and settle tokenized assets.
Ripple chief executive Brad Garlinghouse said: “Metaco is a leader in institutional digital asset custody with an exceptional executive bench and an unmatched customer track record.
“Through the strength of our 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.”
The firm hopes to generate new revenue opportunities by diversifying into custody solutions, noting that the acquisition of Metaco is part of a plan to expand its presence beyond the US amid the current regulatory uncertainty.
In 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its executives for the unregistered sale of XRP tokens amounting to the value of $1.3bn.
The SEC stated that XRP stands as a security and therefore should have been registered with the commission.
Alongside a decrease in popularity among crypto entrepreneurs in US, the legal battle is said to have cost Ripple over $200m.
Although Metaco has been taken under new ownership it will continue to operate as an independent brand and business unit.
“We’re excited to support Metaco as it continues to deliver the same high-quality products and services its team has become known for,” said Ripple's head of custody, Sagar Shah.
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