Earlier this month, the announcement that Metaco, the Swiss digital assets custody firm acquired by Ripple, is collaborating with global banking giant HSBC, stirred enthusiasm within the XRP community. This development is seen as a significant step toward the wider adoption of Ripple’s ledger protocol, particularly the XRP token.
The XRP community, often referred to as the “XRP Army,” views HSBC’s choice of Metaco as a custody tech partner as a positive indicator that more financial institutions may embrace XRPL and, notably, the XRP token. However, it’s crucial to note that Metaco’s engagement with HSBC predates Ripple’s acquisition, spanning over 18 months.
Adrien Treccani, CEO of Metaco, emphasizes an indirect correlation between Ripple protocols and Metaco’s banking clients. He states, “Every success of Ripple the company is also a success for the XRP Ledger.” Ripple has strategically focused on building relationships with banks, particularly in areas such as cross-border payments, making XRPL a pioneering example of a private tokenization blockchain.
Treccani highlights the scalability and versatility of XRPL, designed for both public and private use. He emphasizes its superior performance compared to competitors like Ethereum Virtual Machine (EVM) chains, citing native support for tokenized assets and on-chain trading capabilities.
The integration of Metaco and Ripple forms a comprehensive vertical stack, offering an infrastructure layer and services layer. Treccani explains, “We can provide a bank with the infrastructure, and also tokenization life cycle, payments primitives, and liquidity management all from a single vendor.”
However, rumors surfaced post-Metaco acquisition, suggesting concerns among some banking customers contemplating business alternatives. Treccani dismisses some of the speculation as “a little bit crazy” and underscores that discussions and reassessments with clients are typical post-acquisition. He assures that Metaco has successfully clarified situations with banks and anticipates announcing new tier one bank partnerships globally.
Despite challenges, major banks, including HSBC, are entering the tokenization trend. Adhering to a cryptocurrency and libertarian mindset, Treccani anticipates that banks building for tokenization now will be well-equipped for future cryptocurrency-related services.
As the Ripple-Metaco partnership unfolds, it not only solidifies connections with influential financial institutions but also sparks optimism among the XRP Army for broader adoption in the evolving crypto landscape. The collaboration reflects Ripple’s ongoing efforts to establish XRPL as a leading protocol in the financial industry.