News of the Ripple-owned infrastructure firm Metaco working with banking giant HSBC triggered excitement among the XRP community. The news that the Swiss-based digital assets custody company was working closely with the banking powerhouse made the XRP holders cheerful.
Metaco is a wholly owned subsidiary by Ripple Labs following its acquisition earlier this year. The disclosure of the Swiss infrastructure provider working with HSBC, among the world’s leading banks, triggered a reaction from the XRP community. The engagement became the reason for jubilation among the US ledger protocol supporters identified as the XRP army.
HSBC-Metaco Deal Trigger Excitement in XRP Community
The supporters of the native token associated with the XRP ledger utilized by Ripple Labs interpret HSBC’s choice of Metaco as its custody tech partner as a vote of confidence. The XRP army members consider that other financial institutions would inevitably embrace XRPL and XRP tokens.
The excitement demonstrated by XRP affirms that the crypto space is religiously tribal. All token holders portray the belief that their blockchain of choice would ultimately gain prominence and deliver unmatched windfall.
The arguments demonstrated by communities of various blockchains occasionally defy logic. Such is evident in the assumption that the Ripple Labs acquisition of Metaco prompted HSBC’s decision. Such an argument ignores the revelation by the Swiss custody’s company chief executive Adrien Trecanni of the spirited efforts by Metaco to court the banking giant for over 18 months.
Trecanni explained that an indirect correlation exists between the banking clients of Metaco and Ripple protocol.
Trecanni indicated in a recent interview that the two firms had an indirect link. He noted that adopting Ripple-Metaco’s solutions enhances the uptake of the XRPL protocol. As such, he iterated that the success realized by the Ripple company translates to an invaluable achievement for the XRP ledger.
In recent years, Ripple has devoted itself to courting banks’ friction arising within the cross-border payment areas. By doing so, Trecanni considered that XRPL cements its position as a reliable private tokenization blockchain with the longest-running illustration.
Trecanni acknowledged that SRPL features a unique design accommodating public and private usage. Also, it offers substantially better scales than competitors such as Ethereum Virtual Machine (EVM) chains.
Trecanni indicated that EVM runs native support for the tokenized assets. As such, it overlooks smart contracts while accommodating on-chain trading featuring automated market makers (AMM) and blockchain-based exchanges.
Ripple-Metaco Integration to Facilitate Tokenization Life Cycle
Integrating Ripple and Metaco yields a complete vertical stack that Treccani features as a services and infrastructure layer. He added that the integration makes it possible to provide banks with infrastructure.
The Ripple-Metaco integration can offer a tokenization life cycle, liquidity management, and payment primitives. Doing so involves guaranteeing proper segregation involving value-added services and infrastructure.
The excitement rekindles the concerns Metaco’s banking customers expressed following its acquisition by Ripple. The customers alleged the uncertainty of executive business elsewhere following Ripple’s ongoing legal dispute with the US Securities and Exchange Commission (SEC).
Trecanni indicated that such concerns are merely crazy speculation. He added that the post-acquisition discussions feature in the reassessments of the multiple contracts signed with various financial institutions. Contracts entered with the banks are no exemption as they become subject to the change-of-control clauses.
Embrace Tokenization to Ease Unveiling Crypto-Related Services
Trecanni admitted the existence of such discussions with months spent in clarification talks with the banks. He indicated that the negotiations have been successful. He informed the community of upcoming partnerships involving tier-one banks across Europe, Africa, the US, and APAC.
HSBC is replicating the move by large banks to embrace tokenization. The process involves handling ownership and transfer of physical world assets on the blockchains. Its accomplishment necessitates solid technology for digital asset custody.
Trecanni termed the libertarian mindset exhibited in cryptocurrency as a primary driver. The Metaco chief illustrated that multiple banks desire to offer cryptocurrency-related services.
Trecanni predicts that preparedness for such institutions towards crypto-related services should start by building for tokenization.
Editorial credit: rafapress / Shutterstock.com
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.