Citigroup Inc. is reconsidering its digital assets custody agreement with Swiss fintech company Metaco and has begun discreetly negotiating with other providers, according to those with insight into the situation, Bloomberg reports.
The decision-makers requested anonymity because the discussions are confidential. A year ago, the Wall Street bank announced their collaboration with Metaco. The US Securities and Exchange Commission and Ripple Labs Inc. have been engaged in a long-running legal battle. Last month, Ripple Labs Inc. contracted to buy Metaco for $250 million.
Possibilities for entrepreneurs in this field have been opened up by traditional financial organizations entering the digital assets market, in particular for custody. However, a number of businesses have broken off their relationships with crypto custodians this year, highlighting the difficulties smaller businesses confront in a field where change in technology is happening quickly.
The review’s relationship to Ripple’s purchase of Metaco was unclear. When the purchase was announced, Ripple stated that Metaco will function as a standalone company and be led by its CEO, Adrien Treccani.
In another news, one of the biggest private banks in Liechtenstein, VP Bank, has teamed with Metaco, the industry’s top provider of digital asset technology infrastructure to regulated financial organizations.
Through the collaboration, VP Bank will have the option to broaden its digital asset custody and tokenization services outside art and tangible collectibles, such as supporting tokenized financial assets or the minting process, burning, and preservation of tokens.