San Francisco-based Ripple Labs, a technology and financial services firm built around the XRP cryptocurrency, said it agreed to acquire Metaco, a Swiss-based token and digital asset custody provider, for US$250 million. Is.
See related articles: What is XRP and what is Ripple?
- Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent brand and business unit under the leadership of founder and chief executive Adrian Treccani, the company said in a statement on Wednesday.
- Ripple said the acquisition will help it diversify into custody solutions and bring additional revenue opportunities for the company.
- The company said the acquisition will enable Ripple to expand its enterprise offerings and provide customers with the technology to hold, issue and settle tokenized assets.
- Metaco will have access to Ripple’s customers, the capital to meet the new demand, and the resources to deliver to banking and institutional customers.
- Ripple has been in a lawsuit with the US Securities Exchange Commission (SEC) since December 2020 for allegedly selling US$1.3 billion in unregistered securities. It received a favorable decision Tuesday after Judge Analisa Torres of the US District Court for the Southern District of New York denied the SEC’s motion to seal the controversial Hinman speech documents from the public.
- The document references a June 2018 speech by former SEC official William Hinman, who said the agency does not view bitcoin or ethereum as securities.
- The outcome of the legal battle between the SEC and Ripple is expected to set a precedent for how regulators in the world’s largest economy classify cryptocurrencies.
- According to data from Coinmarketcap, XRP was up 5.48% to $0.4452 at 8 p.m. in Hong Kong. It was the biggest gainer among the top 10 non-stablecoin cryptocurrencies over the past 24 hours.
See related articles: XRP Lawsuit: Judge Denies SEC Motion to Seal Documents in Win for Ripple