In a recent development in the crypto world, Ripple, a leading crypto company, has acquired Swiss company Metaco. Metaco, which specializes in the storage of digital products such as cryptocurrencies, has been sold for an impressive $250 million. Despite the takeover, Metaco will continue to operate under its own brand.
What does Ripple hope to achieve with this purchase?
Metaco is known for creating special tools that make it easier for companies to work with crypto coins. These tools have already been delivered to major financial institutions such as Citi, Union Bank and BNP Paribas. By bringing Metaco on board, Ripple hopes to offer its customers more. They will now be able to hold, spend and handle any kind of digital asset. Existing Ripple customers can also look forward to these new opportunities.
Metaco also sees advantages in this merger. They expect their growth to accelerate thanks to Ripple’s established customer base and resources. In a statement, Metaco said: “We have solid financial foundations and have been reviewing several crypto custodian companies for quite some time. We chose Ripple because of their willingness to proactively work with the current financial system and global policy makers. This gave us confidence that this was the right decision at the right time.”
Ripple’s Long-Term View
Despite the current downturn in the crypto market, Ripple remains focused on its long-term plans, making smart investments in these difficult market conditions. This was confirmed by Sagar Shah, the head of custody at Ripple.
Shah shared that, according to current trends, the value of crypto assets held in custody is expected to reach, if not exceed, the $10 trillion mark by 2030. He believes this will be largely due to institutional investor adoption.
Shah went on to explain that it made sense for Ripple to offer customers the ability to hold, spend and transact all types of tokenized assets. This expansion not only provides Ripple with a new source of revenue, but also allows the company to grow with the developments in the industry.
Ripple’s CEO is not alone in acknowledging the growing popularity of tokenization.
In December of last year, the CEO of investment giant Blackrock spoke of the “future generation markets” that would be dominated by the tokenization of diverse securities.
Ronit Ghose, who leads the future of finance at Citi Bank, shared this view. He called tokenization the “decisive application” of blockchain technology. In addition, he predicted that this technology “could expand 80-fold in private markets and reach nearly $4 trillion in value by 2030.”