Just months after a court ruling, Ripple acquires Metaco, a cryptocurrency custody company based in Switzerland, for $250 million in cash and Ripple equity.
Amid shaky regulatory pressure from the SEC, Ripple considers its location change. Ripple acquires Metaco, as regulatory pressures mount and its legal dispute with the SEC draws to a close.
The acquisition will expand Ripple’s potential customer base and continues to strengthen the company’s positions outside of the United States. After the recent period of crisis and banking instability, regulators seem less friendly to the environment. There is a marked difference between the United States and Europe, as the latter has advanced in the approval of MiCA, the regulatory framework for digital assets.
Ripple Acquires Metaco Amid US Regulatory Unrest
The SEC’s legal process against Ripple is coming to an end and could, with the sentence, decide the future of the cryptographic industry in the United States. Metaco is a Swiss crypto-custody firm, and its acquisition strengthens Ripple’s position.
Said news comes at the right time, as Metaco is one of the most important acquisitions in the sector in the last year, an event commented by Ripple CEO, Brad Garlinghouse, during a call for the international news channel CNBC.
Initially, the company’s investment was $250 million from its own balance sheet for the acquisition of Metaco, according to Garlinghouse. Regarding the acquisition, Ripple CEO stated that “at a time when others are closing their doors or facing layoffs, I think it’s a really important sign for the industry, it’s also a sign that Ripple is in a strong position – we’re going to play offense.”
This seems to be the appropriate moment for those who, during a booming market and large dividends, kept prudence, the same strategy followed by Ripple, as well as by Binance CEO Changpeng Zhao. This clear show of force ensures that it is still possible to do business in the industry in the face of the pressures in all markets today.
Ripple’s expansion in Switzerland seems plausible. In fact, it would not be the only firm that would consider leaving the United States after the strong regulatory line was established. Following the acquisition, Metaco will continue to operate autonomously and Adrien Treccani will continue in his role as CEO. In a recent statement, Treccani commented that the agreement “will allow Metaco to leverage Ripple’s scale and market strength to achieve the goals and deliver value to customers at a faster pace.”
The Clear Swiss Acquisition Opportunity
The agreement conveniently sealed months after the decision by the jury of the SEC lawsuit against Ripple, sheds light on the company’s movements. Garlinghouse repeatedly explained that a ruling against Ripple would set a very clear precedent for the entire industry in the United States.
According to Garlinghouse, Ripple acquires Metaco for being “a good fit in terms of strategic opportunity.” This will allow the company to have more presence in segments such as banking, and provision of payments, a strategy that combines with Ripple’s mission.
After what happened with FTX, the industry turned its interest towards self-custody and segregated cryptographic accounts. The fall of FTX was only the beginning of a long domino effect that ended up hurting the entire ecosystem.
By Audy Castaneda