Citigroup, a prominent American investment bank, is currently conducting a thorough evaluation of its partnership with Swiss fintech firm Metaco for digital-assets custody.
This assessment comes shortly after Ripple Labs announced its acquisition of Metaco for a significant amount of $250 million. According to a report by Bloomberg, Citigroup is now reviewing its existing partnership in light of this recent development.
Insiders familiar with the matter have disclosed that Citigroup has initiated informal discussions with alternative providers in the field of digital-assets custody.
In May, Ripple made a significant announcement regarding its acquisition of Metaco. This acquisition was made amidst Ripple’s ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC), a legal battle that is expected to have substantial financial consequences for the blockchain company, estimated at approximately $200 million.
In June of the previous year, Citigroup initially selected Metaco as its custody partner with the aim of expanding its offerings to include tokenized securities and other products based on blockchain technology.
The reasons behind the current review are not directly linked to Ripple’s acquisition of Metaco. Ripple had previously stated that Metaco would maintain its independence as a brand and would continue to be led by its CEO, Adrien Treccani.
Compiled by Coinbold