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- Ripple’s recent acquisition of Metaco has been applauded by NASDAQ.
- This reportedly hints at a possible IPO in the near future.
Earlier this month, payment company Ripple Labs announced a $250 million acquisition of Switzerland-based crypto custody provider Metaco. This means Ripple is the sole shareholder of Metaco and would expand its offering to include custody, issue, and settlement of tokenized assets for institutional investors. Brad Garlinghouse, Ripple’s Chief Executive Officer (CEO) commented on this:
By focusing on the infrastructure … you’re not 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.
Earlier today on Twitter, Metaco disclosedthat Wall Street brokerage platform, NASDAQ Global Select Market has sent a congratulatory message to Ripple for the acquisition. While this could be a normal gesture to the blockchain firm, many believe that there is more to it. It is worth noting that Ripple is a privately-held firm, and NASDAQ exists as a major hub for publicly traded firms.
Over the years, there have been discussions surrounding Ripple going public through the Initial Public Offering (IPO) route. However, this has been hidden by the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission.
NASDAQ’s Message Got Different Meaning to Ripple?
It is suspected that NASDAQ’s congratulatory message could be a “coded message” for Ripple when it decides to go public. Last year, Garlinghouse disclosed to reporters that the company would explore the possibilities of an IPO after the lawsuit. Garlinghouse also stressed their call for regulatory certainties in the crypto space in the US.
I think we want to get certainty and clarity in the United States with the U.S. SEC. You know, I’m hopeful that the SEC will not slow that process down any more than they already have. But you know, we certainly are at a point in scale, where that is a possibility. And we’ll look at that once we’re past this lawsuit with the SEC.
According to him, the company’s growth is almost all outside the US.
The Ripple Labs vs SEC lawsuit is approaching the “finish line.” Pro-XRP lawyer John Deaton had earlier predicted that a final ruling would be made on or before May 6. However, that was not the case. In a recent interview, Garlinghouse also estimated that the court decision would be made in weeks, not months.
I feel very confident that we’ll see a decision from the Court this year. In fact, I will guess that in weeks, not months.
Interestingly, he had earlier predicted that the ruling would be made in six months according to a video shared by the CEO at Alpha Lions Academy. Experts believe that the change of view has to do with the Judge’s objection to SEC’s attempt to seal documents related to former SEC official William Hinman’s 2018 speech. In his observation, the U.S. government and the SEC have chosen politics ahead of “smart policies”.
This has forced crypto firms to move to friendlier jurisdictions. Its recent acquisition of Metaco is said to hint at its decision to grow its business overseas.
