US remittance system Ripple acquired Metaco to leverage the company’s resources and position itself in the emerging crypto custody market.
Wave Is acquired Swiss-based Metaco for $250 million as part of expanding remittance network into institutional crypto custody. Acquisition also comes in the way favorable decision For Ripple in its ongoing lawsuit with the Securities and Exchange Commission (seconds,
The acquisition of Metaco by Ripple undercuts the US-based tech platform’s confidence in the tokenization space. speaking to decryptRipple’s Head of Custody Sagar Shah has predicted that the institutional crypto custody market will reach $10 trillion by 2030. The Metaco acquisition of the company now sees Ripple poised to soar as the sole shareholder of the digital asset custody company. However, Metaco will continue to operate as an independent brand.
📢 Today, we announce that Metaco has become a part of @ WaveJoining forces to provide exceptional mission-critical software infrastructure solutions that empower institutions to thrive in the rapidly evolving digital asset economy.
to find out more: https://t.co/U68za92n6o pic.twitter.com/scPwNrYfQi— Metaco (@metaco_sa) May 17, 2023
Ripple is looking to expand its institutional offerings for clients using Metaco’s resources, while the Swiss company hopes to benefit from Ripple’s established customer base.
Ripple and Metaco CEOs Comment on Acquisition Benefits
Ripple CEO Brad Garlinghouse weighed in on Metaco and the immediate benefits it brings to the table:
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched client track record. Through the strength of our balance sheet and financial position, Ripple will continue to leverage our leverage in areas critical to crypto infrastructure Bringing on Metaco is critical to expanding our growing product suite and global footprint.
Meanwhile, Metaco founder and CEO Adrian Trecheni said that Ripple shares his company’s passion for helping institutions thrive with digital assets. “We are excited to join the team at Ripple,” Treccani said, adding that Metaco will leverage the resources of the remittance network.
The CEO of Metaco explained that Ripple’s scale and market power will accelerate the achievement of the goals. Treccani added that Metaco will continue to meet the institutional demands of its clients with “the utmost excellence in delivery”. The Swiss company provides institutions with the token tools and custody infrastructure needed to scale new crypto-centric business models. Companies that use or have used Metaco’s services include City Group (NYSE: C), Banc BNP Paribas and Union Bank.
The future of digital assets is tokenization
Ripple sees its Metaco acquisition as a long-term play for supremacy in the digital asset space. The currency exchange and remittance network hopes to take advantage of the explosive crypto market growth by joining forces with the Swiss platform. According to Ripple’s Head of Custody Sagar Shah, crypto assets under custody could cross $10 trillion by the end of the decade. Shah further said that most of these assets will be driven by institutional adoption. In an email to Decrypt, a Ripple executive described the acquisition as a “natural progression” of meeting customer needs. These services include the ability to hold, issue and settle all tokenized assets while harnessing a new revenue stream for the company.
investment powerhouse black Rock Also echoed Ripple’s opinion on the future of tokenization. As early as last December, CEO Larry Fink described securities tokenization as “the next generation of markets.”
Elsewhere, Ronit Ghosh, finance executive at Citibank, said tokenization could vastly increase blockchain value by 2030.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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