February 21, 2024

Ripple acquired Metaco, one of the best-known custodians of cryptocurrencies, for $250 million.

The move leaves Ripple alone with Metaco responsibilities, while giving current CEO Adrien Treccani the leeway to steer the operation independently — crucial, as his leadership is undoubtedly making played a role in getting the company to where it is now.

Ripple President Monica Long hinted that customers will benefit greatly from the deal, saying:

“Adding these capabilities to Ripple’s already growing product offering means we can continue to support customers as they look to embrace the true potential of cryptocurrencies and blockchain in real-world applications.”

Ripple’s Ongoing Battle With the SEC

While the acquisition is seen by many as a positive signal for the future of both companies, Ripple remains embroiled in an ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC) over XRP’s classified status.

Despite the ongoing regulatory challenges, Ripple remains focused on maintaining stability — as evidenced by its recent silence. The acquisition of Metaco further supports this stability as Ripple seeks to carve out its own niche in the rapidly changing payments industry.

Over time, Ripple partnered with major banks, explored remittances, and moved to cross-border payments. Its resurgence in the wider crypto community has coincided with attention being drawn to the SEC lawsuit against it – which could have major ramifications for digital currencies.

What is up in the air right now is whether XRP will be considered a security. If it were regulated as a security, it could have a corresponding impact on cryptocurrencies as a whole – CEO Brad Garlinghouse admits he fought the SEC at great cost economic cost.

Amid speculation about Ripple’s future, Garlinghouse expressed belief that a decision could be made within the year. In his view, this will bring a very desirable level of clarity and stability to Ripple’s trajectory.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.