Ripple (XRP) bulls have been struggling to regain momentum since media reports on June 30 suggested that Citigroup may be reconsidering a partnership with Metaco. Metaco was recently acquired by Ripple Labs for $250 million.
bull loses momentum
Ripple’s native token, XRP, has been on a steady rise for almost two months. Several positive developments and industry expectations that the SEC litigation will end favorably have pushed the stock to a high of $0.54.
However, that momentum began to fade by mid-June, with the token dropping to $0.31 on June 14 following a crackdown on the U.S. cryptocurrency industry by the SEC’s lawsuits against Binance.US and Coinbase.
The bulls managed to pick up momentum last week and were on track to recapture previous highs of $0.54 before news of Citigroup led to a plunge. The price crashed to $0.42, according to CryptoSlate data.
Since then, the token has recovered somewhat to $0.47 at the time of writing, but is struggling to push further as the bears are now firmly in control.
Citigroup likely to exit Metaco
bloomberg news report On June 30, Citigroup announced that it has begun reviewing its partnership with cryptocurrency management firm Metaco, potentially replacing Metaco as a provider.
The Wall Street giant is already looking for a new provider, people familiar with the matter told Newswire. It is unclear whether the review is related to Ripple, according to the report.
city group entered In June 2022, it partnered with Switzerland-based Metaco, which it said would help “develop and test” digital asset custody capabilities.
The lender said at the time that it intended to integrate Metaco’s Harmonize platform within its own offering to provide digital asset custody and settlement services to its clients.
The partnership also aimed to develop tokenization and custody solutions for traditional assets such as securities.
Metaco’s partners also include major European banks such as Societe Generale and BNP Paribas. The latter confirmed that the partnership with Metaco continues to be “working.”
Metaco, Ripple and Citigroup did not respond to requests for comment as of this writing.
Post-Ripple bulls lost steam as reports first appeared on CryptoSlate that Citigroup was reconsidering a deal with Metaco.