• Ripple Labs is purchasing the Swiss-based digital assets custody provider Metaco for $250,000,000.
• The acquisition will allow Ripple’s blue-chip clients to custody, issue, and settle any type of tokenized asset.
• News of the purchase sent XRP upwards with it trading at $0.439 at time of writing.
Ripple’s Acquisition of Metaco
Ripple Labs is paying a nine-figure price tag to acquire Metaco, a Swiss-based digital assets custody provider. The payment of $250,000,000 was in response to research suggesting that institutional investors plan to heavily incorporate crypto custody services into their business models within the next three years.
Benefits for Ripple and Metaco
Through this fusion of the companies both parties are set to benefit from each other’s services and customer base. Ripple’s blue-chip clients will now be able to custody, issue, and settle any type of tokenized asset thanks to Metaco’s tokenization technology. Additionally, Metaco’s access to Ripple’s huge base of customers “will dramatically accelerate its growth trajectory” according to a press release by Ripple CEO Brad Garlinghouse.
Impact on XRP Prices
The news caused an immediate increase in XRP prices with it trading for $0.439 at time of writing – an 4.6% increase during the last 24 hours.
Financial Institutions’ Plans for Crypto Custody Solutions
Ripple stated that recent research conducted shows that most global finance leaders at financial institutions and enterprises have plans to use crypto custody solutions in their business within the next three years – primarily through a third party provider such as Metacos’.
This strategic acquisition is monumental for both companies involved as well as being beneficial for current and potential customers looking for advanced digital asset solutions such as tokenization technology or increased access to customer bases.