Metaco’s Top Executives Leave After Ripple Acquisition

What happened?

Metaco, a Swiss firm that provides cryptocurrency custody solutions for banks and institutions, has lost its CEO and chief product officer, according to a report by CoinDesk. Adrien Treccani and Peter DeMeo have left the company, which was acquired by Ripple, the blockchain company behind XRP, in May 2023. No acting CEO has been named yet, and the reason for their departure is unclear.

Why does it matter?

Metaco was one of the leading players in the crypto custody space, having partnered with several European banks such as Standard Chartered, HSBC, and BBVA. The firm offered a secure and integrated platform for storing and managing digital assets, leveraging hardware security modules and blockchain technology. Metaco also integrated with Zodia Custody, a digital asset custodian backed by Standard Chartered and Northern Trust, to offer global sub-custody services for cryptocurrencies.

The acquisition by Ripple was seen as a strategic move to expand its enterprise offerings, especially in international markets. Ripple said that it expected Metaco to accelerate its growth by accessing its customer base, capital, and resources. Ripple also said that custody was integral to its business, as it aimed to provide best-in-class crypto solutions for its customers around the world.

How did the market react?

The news of Metaco’s top executives leaving the company did not seem to have a significant impact on the price of XRP, Ripple’s native token. XRP was trading at $0.87 at the time of writing, up 2.35% in the last 24 hours, according to CoinMarketCap. XRP is the sixth-largest cryptocurrency by market capitalization, with a value of $40.2 billion.

However, the news could raise some questions about the future of Metaco and its relationship with its existing and potential clients. Some banks were reportedly re-evaluating their partnership with Metaco after the acquisition by Ripple, which is facing a lawsuit from the US Securities and Exchange Commission (SEC) over the alleged illegal sale of XRP as an unregistered security. The legal battle has been ongoing since December 2020, and Ripple has been trying to defend itself and prove that XRP is not a security, but a currency or a commodity.

What’s next?

It is not clear who will replace Treccani and DeMeo as the leaders of Metaco, or how their departure will affect the company’s operations and vision. A Ripple spokesperson confirmed the news to CoinDesk and expressed appreciation for their work and leadership. The spokesperson also reiterated that custody remains a core part of Ripple’s business and that it will continue to support Metaco and its clients.

Metaco has not issued any official statement on the matter, and its website still lists Treccani and DeMeo as its CEO and chief product officer, respectively. The company’s Twitter account has also been inactive since January 2024, when it announced its integration with Zodia Custody. It remains to be seen how Metaco will cope with the changes and challenges ahead, and how it will leverage its partnership with Ripple to grow and innovate in the crypto custody space.