Ripple strategically enters the $10 trillion cryptocurrency custody market with Metaco and HSBC

In a recent Thinking Crypto Podcast interview, Ripple CTO David Schwartz shared insights into Ripple’s strategic move into the projected $10 trillion cryptocurrency custody market. The discussion focused on Ripple’s acquisition of storage-focused company Metaco and its subsequent partnership with global financial giant HSBC.

Ripple’s Strategic Acquisitions and Partnerships

Schwartz emphasized the importance of secure custody solutions in Ripple’s goal of becoming a one-stop shop for institutional cryptocurrency adoption. The acquisition of Metaco, a $200 million deal, allows Ripple to offer comprehensive services including access to the XRP ledger, tokenization, and payments.

The CTO expressed excitement about the partnership with HSBC and revealed plans to provide customers with custody services for digital assets. HSBC’s role includes addressing the regulatory burden for institutions holding cryptocurrencies by using technology for custody and providing compliance services.

Custody, expected to become a $10 trillion market by 2030, underpins the growing trend toward tokenization. Schwartz speculated that institutions looking for cryptocurrency solutions will turn to providers that offer a variety of services, including custody, payments and liquidity.

The conversation also covered HSBC’s interest in tokenized products such as gold and securities. Schwartz acknowledged the ongoing process of aligning Ripple and Metaco’s strategies for optimal synergies. In the words of its CTO, Ripple aims to establish itself as “the leading enterprise solutions provider in this space.”

“I think we’re still figuring out how to align the strategies of Ripple and Metaco to take advantage of what the other can offer,” said Schwartz.

Ripple’s strategic acquisitions and partnerships with Metaco and HSBC help the company remain strong as the XRP ETF or IPO is not the company’s primary focus.