Ripple buys controlling interest in Metaco, a digital technology company
Ripple has acquired a controlling interest Metaco, a Swiss firm specializing in digital asset custody and tokenization technology, establishing Ripple as the exclusive shareholder of the company.
The acquisition, which is Ripple’s first major acquisition, signals a strategic move to broaden its offerings with a product suite around custody infrastructure.
Taking on the custody market
Founded in 2012, Ripple introduced one of the oldest payment networks, RippleNet. This network utilizes the XRP cryptocurrency as a bridge currency to facilitate fast, low-cost, and efficient transactions.
Unlike legacy payment systems that rely on slow and expensive intermediaries, Ripple markets near-instantaneous settlement systems.
In a recent press release issued by Ripple, the company highlights the increase in the number of global and finance leaders that have expressed their intention to incorporate crypto custody solutions into their business operations over a three year timespan.
The acquisition of a controlling interest in Metaco will, in turn, bolster its suite of enterprise offerings. With this acquisition, Ripple will be equipped with technology that enables the custody, issuance, and settlement of various types of tokenized assets.
“Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record. He continues, ‘Through the strength of our balance sheet and financial position, Ripple will continue pressing our advantage in the areas critical to crypto infrastructure.”Brad Garlinghouse, CEO of Ripple.
With the completion of the Metaco share acquisition, Ripple has emerged as the sole shareholder of the company while still allowing Metaco to maintain its autonomy.
A jump in coin price
The news comes just shortly after the native token of Ripple Labs, XRP, experienced a price surge following a court ruling that investors interpreted as favorable for the crypto payments company.
At the time of writing, prices sit around $0.44 cents, a 4.40% increase in the last 24 hours.