Benzinga - In a significant development, blockchain-based payment protocol firm Ripple announced on Wednesday the acquisition of Metaco, a Swiss crypto custody provider, for a deal worth $250 million.
What Happened: In a statement, Ripple stated the acquisition of Metaco is set to extend Ripple's capabilities by integrating technology that allows for the custody, issuance and settlement of tokenized assets.
Metaco provides its clientele with an essential and secure infrastructure for crypto custody, enabling institutions to scale novel business models within the crypto economy.
The foray into custody solutions opens up fresh avenues for revenue, Ripple stated.
The company also highlighted this acquisition aligned with its broader strategy of expanding its influence beyond the U.S., given the country's uncertain regulatory environment for cryptocurrencies.
Also Read: UK Treasury Wonders If Crypto Is Riskier Than Roulette, Urges Regulatory Overhaul
"Metaco has established itself as a trusted leader in the institutional digital asset custody segment with a highly competent executive team and an unparalleled track record with customers," Ripple CEO Brad Garlinghouse said.
Why It's Important: Ripple had been embroiled in a legal dispute with the U.S. Securities and Exchange Commission (SEC) since 2020.
The SEC accused the company and some of its executives of unregistered sales amounting to approximately $1.3 billion in Ripple (CRYPTO: XRP) tokens.
Garlinghouse recently projected the legal fight's cost to the company to be around $200 million.
He also advised crypto entrepreneurs to think twice before setting up their businesses in the U.S.
The presiding judge in the Ripple lawsuit ruled on Tuesday that the regulator cannot conceal documents connected to a former official's speech on crypto and securities in 2018.
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