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Blockchain company Ripple has acquired Swiss cryptocurrency custody firm Metaco for $250m, gearing itself up for institutional offering demands led by new digital asset storage needs, according to a statement. Ripple sells XRP, the sixth-largest cryptocurrency by market cap, and the Metaco deal aims to boost the infrastructure for secure storage and management solutions for digital assets. CEO Brad Garlinghouse noted the move should shield Ripple from US crypto regulations and make an environment for business growth and innovation while adding that focusing on infrastructure does not leave Ripple susceptible to market gyrations, allowing it to better serve its customers’ needs.
This article originally appeared on www.newsbtc.com
The world of cryptocurrencies and blockchain is known for its swift and sudden changes. This is why the acquisition of Metaco – a Zürich-based cryptocurrency custody firm – by Ripple Labs, came as a big surprise for many in the industry. The deal, which cost Ripple an estimated $250 million in Ripple XRP tokens, serves as yet another example of the company’s aggressive expansion strategy in the crypto industry.
The acquisition of Metaco by Ripple Labs is significant because it gives the firm a stronger foothold in the growing sphere of crypto custody. In recent years, there has been an increased need for reliable and secure cryptocurrency storage solutions, especially from institutional investors. On the other hand, Metaco has been a leading provider of such solutions, having developed a secure wallet infrastructure for institutional clients.
By acquiring Metaco, Ripple has made a significant move in expanding its range of services. Ripple’s core product, XRP, has been highly successful as a digital currency and a payment protocol. However, Ripple has been looking to expand its product offerings and cater to a broader range of clients. Recent purchases, such as the acquisition of MoneyGram, was a step towards this effort. With the acquisition of Metaco, Ripple can offer more security solutions to its institutional clients and help them store digital assets risk-free.
In a statement by Ripple, the firm noted that the acquisition would accelerate their plans to expand services with new partners and make it easier for its customers to use digital currencies. Meanwhile, Metaco’s CEO, Seamus Donoghue, also expressed his excitement about the deal, stating that the acquisition would help the firm accelerate growth and innovate more quickly in the digital asset market.
The acquisition further solidifies Ripple’s position as one of the most influential players in the crypto industry. The firm has made strides in recent years towards developing blockchain-based solutions that could revolutionize the global financial system. With a strong lineup of products and a growing network of partners, Ripple could be well on its way to achieving this vision.
In conclusion, Ripple’s acquisition of Metaco could have far-reaching consequences for the crypto industry. It points towards growing appetite for crypto custody services amongst institutional investors, and Ripple has positioned itself well to meet this need. The deal also demonstrates the company’s commitment to expanding its range of products and services, which could make it more attractive to investors and users alike. One thing is for sure – Ripple’s potential to shape the future of the financial industry looks brighter than ever.
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