Payments firm Ripple is paying a nine-figure price tag to acquire Metaco, a Swiss-based digital assets custody provider.
In a new press release, Ripple Labs says its purchasing Metaco for $250,000,000 in response to research suggesting that institutional investors plan to heavily incorporate crypto custody services into their business models within the next three years.
“Custody is a key facet of the infrastructure required for enterprise crypto services, and recent research conducted by Ripple 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.”
Ripple says that the fusion of the companies benefits both parties as Metaco’s services, which include tokenization technology, would allow Ripple’s blue-chip clients to custody, issue, and settle any type of tokenized asset. Additionally, Metaco’s access to Ripple’s huge base of customers will “dramatically accelerate its growth trajectory.”
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.
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.”
News of the purchase sent XRP upwards. The crypto asset is trading for $0.439 at time of writing, a 4.6% increase during the last 24 hours.
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