Ripple purchases Metaco amid ongoing battle with SEC

Ripple purchases Metaco amid ongoing battle with SEC

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Ripple has made a $250 million acquisition of Metaco - one of crypto’s most well known custodians. 

The move sees Ripple take on sole responsibility at Metaco while allowing current CEO Adrien Treccani room enough to steer operations independently - crucial given his leadership undoubtedly played a role in getting the company to where it is now. 

Monica Long, the President of Ripple who hinted that customers would benefit significantly from this deal said:

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

Ripple’s ongoing battle with the SEC

Although this purchase is viewed by many as a positive sign for the future of both companies Ripple remains embroiled in an ongoing legal battle with the Securities and Exchange Commission (SEC) regarding XRP’s classification status. 

Despite this ongoing regulatory challenge, Ripple remains focused on maintaining stability - as evidenced by its recent silence. This stability is further supported by the acquisition of Metaco as Ripple seeks to carve out its niche within an ever-changing payments industry. 

Over time, Ripple has partnered with large banks, explored remittances, and shifted towards cross-border payments. Its resurgence within the broader crypto community coincides with attention garnered from the SEC lawsuit against it - which could have significant repercussions for digital currencies. 

Currently hanging in the balance is whether XRP will be deemed a security. Should it fall under regulation as a security there will likely be consequential implications across cryptocurrencies at large- something CEO Brad Garlinghouse acknowledges having fought this battle with the SEC at great financial expense to his business. 

Amidst speculation regarding Ripple’s future, Garlinghouse has expressed his belief that a decision may be made within the year. In his eyes this would bring much desired clarity and steadiness to Ripple’s trajectory.

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

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