The crypto company Ripple has acquired the Swiss provider of digital asset storage services Metaco.
The value of this transaction was $ 250 million. For a crypto company, the purchase of a service provider is of strategic importance, since it allows it to enter the institutional market for storing digital currencies, which, according to forecasts, will grow to $ 10 trillion by 2030. The deal was announced last Wednesday, May 17.
The purchase of a provider of digital asset storage services takes place against the backdrop of Ripple proceedings related to a lawsuit by regulators, and at a time when many IT companies and crypto firms are assessing the prospects for continuing operations in the United States.
A press release published on the occasion of the transaction indicates that Ripple and Metaco have a general cryptographic DNA, top-level institutional clients, and a long history of working with regulators to create secure corporate solutions.
Ripple, as a result of the acquisition of a digital asset storage service provider, will expand its set of corporate offerings. The company will also provide customers with technology for storing, issuing, and settling any type of tokenized assets.
Metaco will continue to function as a separate brand under the leadership of founder and CEO Adrien Trekkani after the transaction is implemented. The firm will have access to the Ripple database, which includes hundreds of clients, and a large capital and resource base. The relevant information is contained in a press release published on the occasion of the transaction.
The Harmonize offer, created in 2015, is used by banks, other financial organizations, and commercial companies that need a tokenization infrastructure and digital asset storage solutions.
Ripple President Monica Long says that storage is an essential element of the infrastructure that is necessary for the functioning of crypto services. Adding these capabilities to the company’s existing solutions allows for improving the quality of customer service for customers who seek to use cryptography and blockchain for real-world use cases.
Earlier in May, Ripple CEO Brad Garlinghouse said that other countries, compared to the United States, have achieved more significant results in terms of solutions that create favorable conditions for the introduction of innovations in the field of cryptocurrencies. During his speech at the FinTech summit in Dubai, he said that he would not advise entrepreneurs planning to start activities in this area to take their first steps in the American market.
Brendan Berry, head of Ripple’s payment products department, is convinced that the current stage of development of the crypto industry requires active action and effective solutions, and in this case, real usefulness should become a guideline.
As we have reported earlier, Montenegro to Create CBDC with Ripple.