Ripple to Acquire Crypto Infrastructure Startup Fortress Trust, Expanding Beyond Payments
Ripple, a cryptocurrency company known for its cross-border payments, has announced its acquisition of Fortress Trust, a startup specializing in crypto infrastructure. The deal will give Ripple a license in Nevada and allow it to diversify its offerings beyond blockchain-enabled payments. The terms of the deal were not disclosed. Fortress Trust, founded in 2021 by Scott Purcell, aims to assist large enterprises in interacting with digital currencies. Ripple’s existing partners include Modulr, Nium, and SBI Remit. Ripple utilizes XRP, a cryptocurrency it owns a significant portion of, for cross-border payments. The company has faced challenges, including a lawsuit from the U.S. Securities and Exchange Commission alleging XRP as a security. However, a recent ruling deemed XRP “not necessarily a security on its face.” This acquisition follows Ripple’s purchase of crypto custody services provider Metaco in May.
Ripple Expands with Acquisition of Fortress Trust
Ripple has announced its acquisition of Fortress Trust, a crypto infrastructure startup, allowing the company to broaden its services beyond cross-border payments. The deal includes a license in Nevada, expanding Ripple’s regulatory permits. Fortress Trust, founded by Scott Purcell, assists large enterprises in navigating digital currencies. Ripple, known for its blockchain-based messaging system, partners with companies like Modulr, Nium, and SBI Remit. Ripple uses XRP, its own cryptocurrency, for cross-border payments. The company has faced legal challenges, including a lawsuit from the U.S. Securities and Exchange Commission regarding XRP’s classification as a security. However, a recent ruling favored Ripple by stating that XRP is “not necessarily a security on its face.” This acquisition follows Ripple’s previous purchase of crypto custody services provider Metaco in May.
Hot Take
Ripple’s acquisition of Fortress Trust demonstrates the company’s commitment to expanding its presence in the crypto industry. By acquiring a startup specializing in crypto infrastructure, Ripple can diversify its offerings and move beyond its core focus on cross-border payments. This strategic move allows Ripple to gain a license in Nevada and further enhance its regulatory permits. Despite facing legal challenges in recent years, Ripple has continued to make strides in its business, particularly outside of the U.S. With this acquisition, Ripple aims to improve the customer experience within its payments and liquidity solutions. Overall, Ripple’s expansion efforts position the company for future growth and enable it to serve a broader range of customers and use cases in the crypto space.
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