Assessing Custody Solutions in Digital Assets
With the right diligence, digital asset custody can offer more safety, transparency, and cost efficiency than traditional models.
Crédit Agricole’s CACEIS Gains Crypto Custody Registration in France
The traditional finance giant has been rumored to be seeking the status for years.
Ripple Acquires Crypto Custody Firm Metaco In $250 Million Deal
US-based cryptocurrency company Ripple has recently announced its acquisition of Metaco. Metaco is a Swiss-based crypto custody firm and the deal, valued at $250 million, marks Ripple’s foray into the acquisition space.
Metaco specializes in developing cutting-edge technology that enables financial institutions to securely store and effectively manage digital assets. Some of its notable clients comprise Citi, BNP Paribas, and the digital asset arm of Societe Generale.
After the acquisition, Ripple will become the exclusive shareholder of Metaco. It will, however, allow the company to retain its independent brand identity and continue its operations uninterrupted.
Nevertheless, this acquisition holds significant importance for Ripple. Its own cryptocurrency, XRP, currently ranks as the sixth largest in the world based on market capitalization.
Ripple expressed that this acquisition will serve as a catalyst for expanding its institutional offering. Additionally, this will also strengthen its position in the cryptocurrency market.
By integrating Metaco’s expertise and technology, Ripple aims to enhance its capabilities in providing secure storage and management solutions for digital assets.
Investor Caution Has Been Growing Regarding Crypto Asset Storage
Following a decline in cryptocurrency prices in 2022 along with notable collapses of major crypto firms like the U.S. exchange FTX, investor enthusiasm for crypto assets has waned.
A critical factor contributing to this shift in sentiment is the growing alertness among investors regarding the storage of crypto assets. Several crypto platforms had frozen their withdrawals resulting in significant losses for investors. This has prompted them to choose and prioritize secure storage solutions to store their digital assets.
Anticipating a surge in demand from institutional investors, Ripple CEO Brad Garlinghouse expressed his expectation for an upswing in the need for crypto custody services.
He also stated:
By focusing on the infrastructure … you’re not really subject to the same gyrations of the crypto winters. If ultimately you’re solving a clear problem at scale for these customers, there’s going to be demand there.
Amidst the intensifying enforcement actions by US regulators against crypto firms, CEO Brad Garlinghouse highlighted the added appeal of Metaco, being based in Switzerland and having a workforce comprised of non-US employees.
Garlinghouse emphasized that the regulatory landscape in markets outside the United States offers greater and better clarity. This enables companies to make sound and informed investments.
He noted that these transparent and well-defined rules in other jurisdictions have been responsible for creating an environment conducive to business growth and innovation.
Following its recent private financing round, Ripple was valued at $15 billion even though the company had encountered a significant level of regulatory ambiguity.
The uncertainty escalated when the Securities and Exchange Commission (SEC) filed a lawsuit against the company and two of its executives, alleging the sale of unregistered securities. This legal action has further added to the regulatory challenges faced by the crypto giant.
‘War on crypto’ — Newly filed letters lambast proposed SEC custody rules
Industry representatives have cast doubt on the legality and impact of the United States securities regulator’s proposal to expand custody rules.
‘Keep Your Coins’ bill introduced to restrict government control of crypto
“Been working on that since 2016. Unbelievable that Congress won’t unite to end the unjust, immoral, and unconstitutional practice of civil asset forfeiture,” said congressman Warren Davidson.
Avalanche eyes 60% rally as AVAX price breaks out of bull flag
The bullish setup also emerged as crypto custodian BitGo announced that it would add AVAX to its service portfolio.
55% of the world’s top 100 banks reportedly have crypto and blockchain exposure
Over half of the 100 largest banks by assets under management are reportedly investors in major crypto and blockchain technology-based companies and projects.
Deutsche Telekom to store Celo tokens on Coinbase Custody
Europe’s largest telecoms company by revenue has tapped Coinbase Custody for its Celo tokens.
ASX sounds crypto exchange custody warning, calls for better regulations
The Australia Securities Exchange says crypto investors in the country need to be mindful of the dangers of holding their cryptocurrencies on exchange platforms.
Jack Dorsey confirms Square is building an ‘assisted custody’ BTC hardware wallet
Jack Dorsey and hardware lead Jesse Dorogusker have both confirmed Square’s plans to develop a Bitcoin hardware wallet.
Fireblocks faces lawsuit over deleted keys to $72M Ether wallet
The crypto-custody firm claims that it was the client’s responsibility to back up the private keys.
Investment bank Cowen set to offer institutional-grade crypto custody
The 103-year-old bank wants to hold crypto for asset managers and hedge funds as Wall Street begins offering cryptocurrency products to institutional clients.
First Digital Trust announces $2.15M funding for Asian digital payments service
The funding will be used to develop debit and credit card payment rails in Asia.
Goldman Sachs to Enter Crypto Market ‘Soon’ With Custody Play: Source
Goldman, JPMorgan and Citi are all said to be looking at crypto custody.
Anchorage Becomes First OCC-Approved National Crypto Bank
The crypto industry has its first federally chartered bank: Anchorage.
SEC Gives Broker-Dealers Room to Handle Crypto Securities
The SEC’s broker-dealer guidance was generally welcomed as a step in the right direction by industry players.
Banca Generali Leads $14M Round in Italian Crypto Custody Firm Conio
Banca Generali, a subsidiary of Italy’s largest insurer, will also help its customers hold bitcoin following the $14 million Series B.
ING Bank Opens Up About Crypto Custody Solution at Singapore Fintech Event
Speaking at the Singapore Fintech Festival, ING’s blockchain lead spoke publicly for the first time about the bank’s trials with digital assets.
How BitGo Is Getting Into the Events Business
BitGo has added cap intro services, a kind of marketing activity carried out among hedge fund investors, to its crypto brokerage offering.