In a recent interview on the Thinking Crypto Podcast, Ripple CTO David Schwartz shared insights into Ripple’s strategic move into the projected $10 trillion crypto custody market. The discussion focused on Ripple’s acquisition of Metaco, a custody-focused firm, and its subsequent partnership with global banking giant HSBC.
Ripple’s Strategic Acquisitions & Partnerships
Schwartz highlighted the importance of a secure custody solution in Ripple’s goal to be a one-stop shop for institutional crypto adoption. The acquisition of Metaco, a quarter-billion-dollar deal, positioned Ripple to offer comprehensive services, including access to the XRP Ledger, tokenization, and payments.
The CTO expressed excitement about the partnership with HSBC, revealing their plans to offer clients custody services for digital assets. HSBC’s role involves using technology for custody and providing compliance services, addressing the regulatory burden for institutions holding cryptocurrencies.
Custody, projected to be a $10 trillion market by 2030, supports the growing tokenization trend. Schwartz speculated that institutions seeking crypto solutions would likely turn to providers offering various services, including custody, payments, and liquidity.
The conversation also touched on HSBC’s interest in tokenized commodities like gold and securities. Schwartz acknowledged the ongoing process of aligning Ripple’s and Metaco’s strategies for optimal synergy. In the words of the CTO, Ripple aims to position itself as the “leading enterprise solution provider in the space.”
Schwartz remarked, “I think we’re still figuring out how to adjust Ripple’s and Metaco’s strategies to take advantage of what the other can provide.”
Ripple’s strategic acquisitions and partnerships with Metaco and HSBC are helping the firm stand strong, as XRP ETFs or IPOs are not the company’s primary focus.
