Cryptocurrency firm Ripple has announced its acquisition of Fortress Trust, a startup specializing in crypto infrastructure. This acquisition will provide Ripple with a license in Nevada and enable the company to broaden its services beyond its primary focus on blockchain-enabled payments. Although the terms of the deal were not disclosed, it marks Ripple’s second acquisition this year, following its purchase of Swiss crypto custody services provider Metaco for $250 million in May.
Fortress Trust, founded in 2021 by Scott Purcell, aims to facilitate large enterprises’ interactions with digital currencies. This acquisition will further strengthen Ripple’s position in the crypto industry and allow it to offer a more comprehensive suite of services to its clients. Ripple is widely known for its role in cross-border payments, using a blockchain-based messaging system similar to SWIFT to facilitate fast transactions between banks and financial institutions.
The acquisition of Fortress Trust will also enable Ripple to provide regulated services for both fiat and crypto to specific customers in the United States. Ripple already holds a New York BitLicense and various other licenses globally.
Ripple has faced regulatory challenges in recent years, including a lawsuit by the U.S. Securities and Exchange Commission (SEC) alleging that XRP, a cryptocurrency closely associated with Ripple, should be considered a security. The lawsuit alleged that Ripple’s executives sold over $1 billion worth of XRP to investors in an illegal securities offering. However, in July, a judge ruled that XRP was “not necessarily a security on its face,” providing some clarity to Ripple’s regulatory situation.
The acquisition of Fortress Trust is seen as part of Ripple’s broader strategy to expand its services and grow its business both within and outside the United States.
