26 Apr 2018
Avaloq acquires 10% stake in Swiss blockchain and crypto-currency specialist Metaco

Swiss fintech leader Avaloq has acquired a 10% stake in Metaco, the Lausanne-based blockchain and crypto-currency specialist. The acquisition, which is part of Metaco’s second round of funding, will see Francisco Fernandez, Avaloq’s founder and Group Chairman, join Metaco’s Board of Directors.

Established in 2014, Metaco has rapidly become an expert in helping banks and financial institutions, including national banks, capitalise on the latest blockchain technologies and systems. It has developed specialist, high-grade cryptographic solutions that can be fully integrated into a bank’s core processes. The firm, which is already offering its solutions on the Avaloq Software Exchange, is also a leading provider of highly secure custody solutions for crypto assets. Its proprietary offering has continued to differentiate Metaco in the blockchain sector and position the firm at the forefront of the market.

With average daily trading volumes constantly increasing, cryptocurrencies and digital assets are beginning to rival some of the world’s most liquid assets as more investors diversify into these new asset classes. Where traditional banks, consultancies and other fintechs do provide a blockchain management and advisory service, these are usually not integrated into digital banking channels and rely on third parties or high-risk manual systems that are expensive, inefficient and insecure.

Avaloq has acquired the stake in Metaco to enhance its own expertise and solutions with regards to blockchain technology. The move ties in with the firm’s deep commitment to innovation, digital excellence and investing in radical innovation technologies. Francisco Fernandez, Group Chairman and founder of Avaloq, will join Metaco’s Board of Directors with the aim to help Metaco grow and expand. As a result of the Metaco partnership, there will be no organisational changes within Metaco or Avaloq but there will be close cooperation going forward.

The financial terms of the deal are not being disclosed. Alongside Avaloq as the largest new shareholder, Metaco has also welcomed additional new strategic shareholders including Swisscom, Swiss Post and SICPA. The high calibre of these shareholders is an indication of the esteem that Metaco has in the market; the new shareholders will, along with Avaloq, also provide significant strategic synergies and business advantages to Metaco as it develops and invests for growth.

“The aim of Metaco and Avaloq is to help the financial industry with the opportunities and challenges of blockchain technology by offering outstanding solutions in the field of distributed ledger, cryptocurrencies and digital assets. We believe the world is heading towards accelerated digitalisation of further asset classes and processes. In just four years Metaco has developed into a fast-growth provider of cutting edge technologies at the heart of the blockchain industry. It is a fantastic opportunity for Avaloq and I greatly look forward to working closely with the Metaco team,” said Francisco Fernandez, Chairman of Avaloq.

“The enormous potential of distributed ledgers and digital assets in the banking industry has remained largely unexploited due to the lack of integrated solutions and the radically innovative nature of such systems. Therefore, I am extremely excited to be connected to the Avaloq Community even closer. Avaloq and the other new shareholders will allow us to specialize even further and accelerate growth in the banking sector. I look forward to the interaction with Francisco Fernandez and the Avaloq team,” said Adrien Treccani, Founder and CEO of Metaco.