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American multinational investment giant – Citigroup Inc. Reportedly reviewing its partnership with Metaco. The Swiss firm, which specializes in crypto custody for institutional investors, partnered with Citi a year ago to develop and operate Citi’s digital asset custody capabilities.
The latest development comes amid turbulent market conditions that have caused considerable strain in relations with traditional financial firms entering the digital asset industry.
Tension in the relationship between Citi and Metaco?
According to Bloomberg sources familiar with the matter, both Citi and Metaco have started Informal conversation with other providers. However, the deliberations are private, and hence, the sources have chosen to remain anonymous.
The reason for the decision has not yet been revealed, as a city representative declined to comment. The latest wave of uncertainty that has gripped the crypto industry has prompted many of its dedicated banking partners to go under or withdraw from crypto firms.
The report cited examples such as the recently launched platform EDX Markets, a crypto exchange backed by firms including Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp., which leveraged Paxos as a custodian. have canceled their plans.
Similarly, banking giant State Street Corp also ended its licensing agreement with crypto custody firm Copper last month, shuttering its enterprise infrastructure business for connecting banks and hedge funds to digital assets. Copper’s association with State Street spans more than a year since its parting last March.
Blame the Ripple Partnership?
Last month, blockchain firm Ripple announced it would spend $250 million to acquire Metaco to expand its services so that customers can keep their digital assets safe with its upcoming product suite. Commenting on the development, Metaco founder and CEO Adrian Treccani said the acquisition will allow the Swiss company to grow further in the market.
But with Ripple itself embroiled in a long-running lawsuit with the U.S. Securities and Exchange Commission (SEC) and custody becoming a point of contention for the crypto industry, Citi has decided to review the partnership, which in the past Applicable since summer. appears to be worrying.
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American multinational investment giant – Citigroup Inc. Reportedly reviewing its partnership with Metaco. The Swiss firm, which specializes in crypto custody for institutional investors, partnered with Citi a year ago to develop and operate Citi’s digital asset custody capabilities.
The latest development comes amid turbulent market conditions that have caused considerable strain in relations with traditional financial firms entering the digital asset industry.
Tension in the relationship between Citi and Metaco?
According to Bloomberg sources familiar with the matter, both Citi and Metaco have started Informal conversation with other providers. However, the deliberations are private, and hence, the sources have chosen to remain anonymous.
The reason for the decision has not yet been revealed, as a city representative declined to comment. The latest wave of uncertainty that has gripped the crypto industry has prompted many of its dedicated banking partners to go under or withdraw from crypto firms.
The report cited examples such as the recently launched platform EDX Markets, a crypto exchange backed by firms including Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp., which leveraged Paxos as a custodian. have canceled their plans.
Similarly, banking giant State Street Corp also ended its licensing agreement with crypto custody firm Copper last month, shuttering its enterprise infrastructure business for connecting banks and hedge funds to digital assets. Copper’s association with State Street spans more than a year since its parting last March.
Blame the Ripple Partnership?
Last month, blockchain firm Ripple announced it would spend $250 million to acquire Metaco to expand its services so that customers can keep their digital assets safe with its upcoming product suite. Commenting on the development, Metaco founder and CEO Adrian Treccani said the acquisition will allow the Swiss company to grow further in the market.
But with Ripple itself embroiled in a long-running lawsuit with the U.S. Securities and Exchange Commission (SEC) and custody becoming a point of contention for the crypto industry, Citi has decided to review the partnership, which in the past Applicable since summer. appears to be worrying.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
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