Ripple Acquired Swedish Crypto Custody Provider Metaco
Ripple said on Wednesday that it has acquired Metaco which is a Swiss company that provides safe custody of digital assets on behalf of customers . The San Francisco-based company was still fighting a lawsuit brought by the SEC when news of the purchase that can be considered one of the biggest acquisitions in the crypto market in the previous year or so broke .
Ripple said on Wednesday that it has acquired Metaco which is a Swiss company that provides safe custody of digital assets on behalf of customers . The San Francisco-based company was still fighting a lawsuit brought by the SEC when news of the purchase that can be considered one of the biggest acquisitions in the crypto market in the previous year or so broke .
Ripple Bought Metaco for $250 Million
The American cryptocurrency company Ripple announced on Wednesday that it will be purchasing the cryptocurrency custody firm Metaco for $250 million . This is considered Ripple’s first major purhcase. According to the company the price was paid using cash and stock in equal parts .
As a custodian, Metaco creates software that banks can use to keep track of their digital assets . Citi, BNP Paribas and the digital asset division of Societe Generale are among its customers .
Ripple’s CEO Brad Garlinghouse called the acquisition of Metaco “monumental” for the company’s developing product lineup and its worldwide reach . Following a hard decline in cryptocurrency values in 2022 and a string of failures at key crypto businesses (notably the FTX exchange in the United States) investor interest has waned a lot . After suffering heavy losses due to crypto platforms halting withdrawals investors have grown more wary about how they keep their cryptocurrencies . Despite this, companies like Ripple try to recover that trust .
SEC’s Stance Against Crypto Forces Crypto Companies to Look Overseas
Since U.S. officials are cracking down on the crypto industry Garlinghouse thinks it’s a plus that Metaco is based in Switzerland and employs people from outside the U.S. The SEC’s head Gary Gensler has made it plain that the agency will continue to crack down on the cryptocurrency industry . Gensler has claimed that crypto is already covered by current securities rules .
However there are others in the business world who think the SEC is wrong in its stance against the crypto industry . Numerous crypto sector insiders have been pressing the U.S. Congress for a clear legislative framework to enable businesses to understand how they may lawfully operate .
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