All articles tagged with #crypto custody
Major US banks are cautiously exploring cryptocurrency opportunities, primarily through pilot programs and partnerships, as they await clearer regulatory guidance and more favorable policies from authorities. While some banks are considering offering crypto trading and custody services, they remain hesitant to fully commit due to regulatory uncertainties and concerns over AML and compliance issues.
The House Financial Services Committee advanced a resolution to overturn the SEC's Staff Accounting Bulletin 121 (SAB 121), which has hindered banks from offering crypto custody services, with bipartisan support. The resolution aims to utilize the Congressional Review Act to revoke what is seen as an "unlawful rule" and has garnered significant industry support. Repealing SAB 121 is crucial for institutional adoption of crypto and could address concerns over concentration risk in bitcoin custody for ETFs, as well as rectify the overreach of the SEC guideline.
Crypto custody firm Prime Trust has been issued a cease-and-desist order by the Nevada Department of Business and Industry's Financial Institutions Division (FID) due to a "shortfall in customer funds" and a "considerably deteriorated" financial condition. The FID alleges that Prime Trust breached its fiduciary duties and failed to safeguard assets under its custody. Prime Trust reported a negative $12 million stockholders' equity position at the end of March 2023. The company can request a hearing within 30 days of the order, or the order will be deemed final.
Ripple, the sixth largest cryptocurrency, is acquiring Swiss crypto custody firm Metaco for $250 million, with more than half of the deal paid in cash. Metaco provides technology for financial institutions to store and manage digital assets, with clients including Citi and BNP Paribas. This marks Ripple's first major acquisition and CEO Brad Garlinghouse said it is "monumental" for the company's product suite and global expansion. The acquisition comes as investors become increasingly cautious about where and how crypto assets are stored, following a series of collapses at major crypto firms and regulatory crackdowns.
Ripple has acquired Swiss-based digital asset custody and tokenisation technology provider Metaco to expand its enterprise offerings and provide customers with the technology to custody, issue and settle any type of tokenised asset. The acquisition will enable Metaco to leverage Ripple's scale and market strength to reach its goals and deliver value to its clients at a faster pace. The institutional crypto custody market is expected to reach $10tn by 2030, and most global finance leaders at financial institutions and enterprises have plans to use crypto custody solutions in their business within the next three years.
Ripple has acquired Swiss-based crypto custody provider Metaco for $250 million, allowing the company to expand its offerings by incorporating the technology to custody, issue, and settle tokenized assets. The acquisition is part of Ripple's strategy to broaden its presence beyond the U.S and its uncertain regulatory landscape. Ripple will become the sole shareholder of Metaco, which will continue to operate as an independent business unit led by its founder and CEO Adrien Treccani.