# Ripple buys crypto custody firm Metaco for $250 million Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-18 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Ripple Acquires Metaco: $250 Million Deal Meta Description: Ripple buys Switzerland-based crypto custody firm Metaco for $250 million to meet increased demand from institutional investors. xrp, cryptocurrency news URL: https://financedigest.com/ripple-buys-crypto-custody-firm-metaco-for-250-millionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-18t085301z2lynxmpej4h0a9rtroptp4fintech-crypto-1736813997700-compressed.jpg) # Ripple buys crypto custody firm Metaco for $250 million (This May 17 story has been corrected to clarify that the token is called XRP, not Ripple, in paragraph 9) By Elizabeth Howcroft LONDON (Reuters) – U.S. [crypto firm Ripple has bought Switzerland-based crypto custody firm Metaco for $250 million](https://www.financedigest.com/crypto-broker-genesis-owes-geminis-customers-900-million-ft.html "Crypto broker Genesis owes Gemini’s customers 0 million – FT"), in its first major acquisition, Ripple said on Wednesday. Metaco makes technology which allows financial institutions to store and [manage digital assets](https://www.financedigest.com/guide-to-choosing-a-digital-asset-management-system.html "Guide to Choosing a Digital Asset Management System"). Its clients include Citi, [BNP Paribas](https://www.financedigest.com/bnp-paribas-first-quarter-revenue-beats-as-trading-outperforms.html "BNP Paribas first-quarter revenue beats as trading outperforms"), and Societe Generale’s digital asset arm. Investor interest in crypto [assets](https://www.financedigest.com/rambus-unveils-vaultify-trade-for-secure-transaction-and-storage-of-crypto-assets-on-blockchain.html "Rambus Unveils Vaultify Trade for Secure Transaction and Storage of Crypto Assets on Blockchain") has cooled following a drop in cryptocurrency prices in 2022 and series of collapses at major crypto firms, including U.S. exchange FTX. [Investors have become increasingly cautious about where and how crypto](https://www.financedigest.com/dollar-catches-breath-while-investors-await-midterms-cryptos-skittish.html "Dollar catches breath while investors await midterms; cryptos skittish") assets are stored, after crypto platforms freezing withdrawals left them facing large losses. Ripple CEO Brad Garlinghouse said he expected [increased demand from institutional investors for crypto custody services](https://www.financedigest.com/ospt-alliance-membership-nears-100-as-it-increases-influence-on-mobility-services.html "OSPT Alliance Membership nears 100 as it Increases Influence on Mobility Services"). “By focusing on the infrastructure … you’re not really subject to the same gyrations of the crypto winters,” he said. If ultimately you’re solving a clear [problem at scale for these customers](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems"), there’s going to be demand there. As U.S. [regulators step up enforcement](https://www.financedigest.com/uk-regulators-head-of-enforcement-to-step-down-in-2023.html "UK regulator’s head of enforcement to step down in 2023") actions against crypto firms, Garlinghouse said that Metaco being based in Switzerland, with non-U.S. employees, added to the appeal of the company. The rules of the road in other markets compared to the United States are clear and it’s that clarity of rules that allows [companies to invest,”](https://www.financedigest.com/invest-in-cryptocurrencies-commodities-or-companies.html "Invest in cryptocurrencies, commodities or companies?") he said. Ripple’s token, XRP, is the world’s sixth largest cryptocurrency, with around $23 billion of the coin in circulation, according to [market tracker](https://www.financedigest.com/online-distribution-and-ecommerce-segments-are-expected-to-boost-demand-of-smart-fertility-tracker-market.html "Online Distribution And Ecommerce Segments Are Expected To Boost Demand Of Smart Fertility Tracker Market") CoinGecko. More than [half of the $250 million acquisition was paid](https://www.financedigest.com/payday-millionaires-brits-spend-nearly-half-43-of-their-disposable-income-within-24-hours-of-being-paid.html "PAYDAY MILLIONAIRES: Brits spend nearly half (43%) of their disposable income within 24 hours of being paid") for in cash, and the rest in equity, Ripple said. Privately-owned [Ripple last year expressed interest in acquiring assets](https://www.financedigest.com/senior-ripple-veteran-vijay-chetty-joins-sharespost-digital-assets-group.html "Senior Ripple Veteran Vijay Chetty Joins SharesPost Digital Assets Group") including from bankrupt lender Celsius. In December 2020, Ripple was sued by the U.S. Securities and Exchange Commission (SEC), charged with conducting a $1.3 [billion unregistered securities offering](https://www.financedigest.com/uks-morrisons-agrees-to-raised-9-3-billion-offer-from-fortress-led-group.html "UK’s Morrisons agrees to raised .3 billion offer from Fortress-led group"). Ripple has rejected the charges, [saying the token is a currency and does not need](https://www.financedigest.com/ftx-collapse-shows-urgent-need-to-finalise-eu-crypto-rules-says-european-commission.html "FTX collapse shows urgent need to finalise EU crypto rules, says European Commission") to be registered as an investment contract. Ripple is “not in any hurry” to do an IPO, and has around $1 billion of cash on its [balance sheet](https://www.financedigest.com/ecb-policymakers-back-jumbo-rate-hike-differ-on-balance-sheet-cut.html "ECB policymakers back jumbo rate hike, differ on balance sheet cut"), Garlinghouse said. (Reporting by Elizabeth Howcroft; editing by Louise Heavens) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---