Ripple Abandons Acquisition of Fortress Trust
Ripple CEO, Brad Garlinghouse, recently announced that the company has decided to cancel its plans to acquire crypto custodian firm Fortress Trust. Ripple had expressed interest in the Nevada-licensed financial services provider back in September 2023, with Garlinghouse stating that they were excited about the potential of integrating Fortress Trust’s technology into their business.
In a social media post on platform X, Garlinghouse explained that although they had signed a letter of intent for the acquisition a few weeks ago, they have now decided not to proceed with it. However, Ripple will still remain an investor in Fortress Trust.
Supporting the Talented Fortress Team
Garlinghouse praised the talent and innovative products developed by the Fortress team. Despite the change in plans, he emphasized that Ripple will continue to support them and hopes to collaborate with them in the future.
Interestingly, around the same time as news of the potential acquisition emerged, Fortress revealed that they had been impacted by a security incident involving a third-party vendor. Reports suggest that Ripple intervened to assist Fortress in resolving issues faced by their customers, resulting in approximately $15 million in losses for Fortress during the breach.
Although the deal is no longer happening, Fortress has reposted Garlinghouse’s statements on their official X account page, sharing his social media posts about the acquisition. The company has received funding from various sources including Mighty Capital, Salt, Ayon Capital, Nevcaut Ventures, Eagle River, and Ripple.
Hot Take: Ripple’s Decision Highlights Strategic Shift
Ripple’s withdrawal from the deal with Fortress Trust signifies a shift in their strategic focus. While initially eager to acquire the crypto custodian firm and leverage its technology, Ripple has now chosen to remain an investor rather than pursuing a complete acquisition. This decision may indicate a change in Ripple’s growth strategy and their approach to partnerships in the crypto industry. By continuing to support Fortress and expressing interest in future collaboration, Ripple aims to maintain strong relationships within the sector while exploring alternative avenues for expansion and innovation.
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