XRP bulls stutter as Citigroup rethinks custody partnership with Ripple-owned Metaco digital custody

  • A Bloomberg report indicates that Citigroup is reviewing its digital asset custody deal with Metaco; informal talks with other providers are underway.
  • Ripple Labs spent $250 million acquiring Metaco in May to expand its services suite to customers.
  • While it remains unclear whether Citi's reappraisal has anything to do with Ripple's owning Metaco, XRP traders play it steady.

Ripple (XRP) price has faltered, trading without a clear directional bias on June 30, while the stalling has something to do with the concerns by the US Securities and Exchange Commission (SEC) about the Exchange Traded Filing (ETF) being inadequate, recent revelations have emerged that could have a bearing on XRP.

Also Read: Bitcoin Cash price abandons parity with BTC, forges higher despite SEC's concerns over crypto ETF filings

XRP traders on a wait-and-see approach 

Ripple (XRP) price slumped after the US SEC put off BlackRock's ETF application. However, the remittance token had dipped in market value before the regulator's announcement. The move interrupted the June 29 attempted recovery, delivering XRP back into the hands of the bears.

Without any developments in the Ripple vs. SEC case, all signs point to fear, uncertainty, and doubt (FUD), around a recent development in the XRP ecosystem. According to a Bloomberg report, which cited persons unnamed for obvious reasons, there could be some negative news brewing for Ripple.

The Bloomberg report notes that Citigroup Company is rethinking its digital asset custody deal with Metaco, a Swiss finance technology firm Ripple had bought for $250 million in May. Citigroup, an American investment bank, partnered with Metaco in 2022, about a year before Ripple acquired the company.   

Ripple Labs bought Metaco at a concerning time, at the highlight of a bear market when Bitcoin (BTC) price was fighting to beat the $28,000 level. Moreover, Ripple's case against the SEC was still heated, with pro-XRP lawyer John Deaton devising ways to assure victory for the community. Amid the fracas, the Ripple ecosystem had sought to strengthen its market presence with investments.

With Ripple CEO Brad Garlinghouse saying the company had almost $1 billion in reserves that could be channeled toward expansion projects, the payments company had purchased Bitstamp shares, previously owned by an American investment firm, Pantera Capital.

At the time, Garlinghouse also advocated for acquisitions, hence the Metaco purchase is now subject to concern. It was part of a growth strategy to reach other customers beyond those looking for payment services. Specifically, Ripple Labs wanted to offer its customer base customers tokenization, payments, and storage capabilities for every asset. ,

As of press time, there is no certainty on whether Citigroup's reappraisal of the deal with Metaco has anything to do with Ripple. This is because it had been communicated that Metaco would be an autonomous entity with a separate CEO, Adrien Trecaani.

However, Ripple price indicates traders are playing it cool, neither longing nor shorting their holdings until further clarity presents. For the XRP hodlers, the end game is the expected Summary Judgement By Judge Analisa Torres.

Ripple price forecast as XRP bulls play it cool

The composure among bulls is indicated in the daily chart for XRP/USDT trading pair below, suggesting that Ripple price still holds around the same level recorded on June 29.

XRP/USDT 1-Day Chart

Technical indicators like the Relative Strength Index (RSI) and Awesome Oscillators (AO) also indicate a lack of strong will among bulls.

FXStreet will bring you updates about the matter as they unfold.

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