American fintech company Ripple has acquired Switzerland-based blockchain firm Metaco for $250 million. This marks Ripple’s entry into the asset tokenization field. The acquisition is expected to help Ripple expand its enterprise offerings, particularly in international markets. Ripple plans to provide customers with the technology to custody, issue, and settle any type of tokenized asset. The company also expects Metaco to accelerate its growth by gaining access to Ripple’s customer base, capital, and resources. This will enable Metaco to continue delivering on its commitment to banking and institutional clients.
Ripple sees opportunity in current market conditions
Ripple’s acquisition of Metaco comes as the crypto industry in the US faces an ongoing regulatory crackdown by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury Department. Many firms in the industry are also feeling the effects of tighter monetary policy in the US, which has resulted in layoffs across the board. However, Ripple appears to see the current conditions as an opportunity to cement its position in the market. Ripple’s CEO, Brad Garlinghouse, has called on the company to “play offense” at a time when others are closing their doors or facing layoffs. Garlinghouse believes that the acquisition of Metaco is a strong signal for the industry and that Ripple is in a strong position to continue growing.
Ripple fights SEC over sale of XRP token
Ripple is currently fighting the SEC in courts over the sale of the XRP token. The CEO of Ripple, Brad Garlinghouse, recently called out the SEC for its “hypocrisy” on Twitter in response to a thread by Coinbase’s chief legal officer Paul Grewal. Despite the ongoing legal battle, Ripple remains focused on expanding its enterprise offerings and sees the acquisition of Metaco as an important step in achieving this goal. The acquisition is also the largest deal Ripple has seen in the last year, according to Garlinghouse.