U.S. cryptocurrency firm Ripple announced Wednesday that it is buying crypto custody firm Metaco for $250 million.
The deal marks the first major acquisition for Ripple. More than half of the $250 million acquisition was paid for in cash, and the rest in equity, Ripple said.
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Metaco makes technology that allows financial institutions to store and manage digital assets. Its clients include Citi, BNP Paribas and Societe Generale’s digital asset arm.
“Bringing on Metaco is monumental for our growing product suite and expanding global footprint,” Ripple CEO Brad Garlinghouse said in a statement.
Investor interest in crypto assets has fallen since a drop in cryptocurrency prices in 2022 and a series of collapses at major crypto firms, including U.S. exchange FTX.
Investors have also become increasingly cautious about where and how crypto assets are stored, after crypto platforms freezing withdrawals left them facing large losses.
As U.S. regulators step up enforcement actions against crypto firms, Garlinghouse said that Metaco being based in Switzerland, with non-U.S. employees, added to the appeal of the company.
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Ripple is privately owned and is the world’s sixth largest cryptocurrency, with around $23 billion of the coin in circulation, according to market tracker CoinGecko.
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Reuters contributed to this report.