Cryptocurrency company Ripple has made a significant announcement, revealing its acquisition of startup Fortress Trust. This move allows Ripple to expand beyond its primary focus of blockchain-enabled payments by gaining a license in Nevada. The terms of the deal have not been disclosed.
Fortress Trust, founded in 2021 by Scott Purcell, specializes in assisting large enterprises with digital currencies. Purcell, who previously served as CEO of crypto custodian Prime Trust, aims to facilitate interaction between these enterprises and the world of cryptocurrencies.
Ripple is widely recognized for its role as a cross-border payments firm. Its blockchain-based messaging system, similar to SWIFT, expedites transactions between a network of banks and other financial institutions.
Notably, Ripple utilizes XRP, a cryptocurrency in which it owns a significant stake, for cross-border payments. Partnerships with companies like Modulr, Nium, and SBI Remit further strengthen Ripple’s position in the industry.
Despite this news, XRP’s value did not experience significant movement, seeing a modest 0.4% increase in the past 24 hours and maintaining a trading price of 50 cents.
Ripple has faced challenges in recent years, including a lawsuit from the U.S. Securities and Exchange Commission alleging that XRP should be deemed a security. Additionally, the lawsuit claimed that Ripple executives illegally sold over $1 billion worth of XRP tokens to investors. As a result, Ripple and MoneyGram ended their partnership in March 2021.
However, a significant victory occurred in July when a judge ruled that the XRP token was not necessarily a security. This ruling has had a positive impact on Ripple’s business, particularly outside of the United States, where the majority of its clients are based.
The latest acquisition of Fortress Trust marks the second such deal for Ripple this year. Previously, in May, the company acquired Swiss crypto custody services provider Metaco for $250 million. While the size of the Fortress Trust deal remains undisclosed, a Ripple spokesperson stated that it was smaller than the investment made in Metaco.
This acquisition aligns with Ripple’s mission to enhance the customer experience within its payment and liquidity solutions. Furthermore, the company has obtained a Nevada trust through this acquisition, adding to its extensive list of global regulatory permits.
Ripple currently holds a New York BitLicense and 30 money transmitter licenses across the U.S. It also possesses an in-principle Major Payment Institution License from the Monetary Authority of Singapore and is actively pursuing an e-money license with the Irish central bank.
Furthermore, Ripple operates in the “crypto custody” space, which involves securely storing tokens for companies and individual users. Fortress Trust utilizes APIs to allow companies to access data from various software, including wallets holding cryptocurrencies and nonfungible tokens.
Fortress Trust’s clientele spans a wide range of industries, including crypto exchanges, NFT marketplaces, tokenization platforms, corporate brands, agencies, securities exchanges, real estate, healthcare, neobanks, sports and entertainment celebrities, musicians, influencers, and other innovators.
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