Citigroup is reviewing its partnership with digital asset custodian Metaco: Bloomberg
Quick Take
- U.S. banking giant Citigroup is reviewing its partnership with Swiss digital asset custodian Metaco, Bloomberg reports.
- It’s unclear whether the review is due to Ripple’s acquisition of Metaco last month.
- The SEC sued Ripple in 2020 for allegedly violating security regulations, and the two remain in a legal feud to this day.
Citigroup, a large U.S.-based banking firm, is reviewing its partnership with digital asset custodian Metaco.
The banking giant is undergoing informal talks with other providers, Bloomberg reported citing people familiar with the matter. The crypto firm Ripple agreed to buy Metaco for $250 million last month, but it's not certain whether Ripple's purchase is affecting Citigroup's decision to look elsewhere.
Citigroup's review comes a year after the firm stamped a partnership with Metaco on June 22, 2023. Citigroup intended to scout what tokenized security custody could look like on its platform, such as blockchain-based stocks or bonds.
The U.S. Securities Exchange Commission sued Ripple in 2020 for allegedly selling $1.3 billion in unregistered securities, including $600 million worth of the digital asset Ripple (XRP). The two remain in a legal feud as recently as this month, in which Ripple claims that former SEC William Hinman gave conflicting definitions of what a security actually is, The Block previously reported.
Citigroup and Metaco did not respond to The Block's request for comment.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
