Ripple to Acquire Cryptocurrency Infrastructure Startup Fortress Trust, Expanding Beyond Payments
Ripple, a digitalย currency company known for its cross-border payments, has announced its acquisition of Fortress Trust, a startup specializing in cryptocurrency 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, established in 2021 by Scott Purcell, aims toย help large enterprises in interacting with digitalย currencies. Rippleโs existing partners include Modulr, Nium, and SBI Remit. Ripple utilizes XRPย Rippleย (XRP), a digitalย currency it owns a wholeย lotย of portion of, for cross-border payments. The company has faced challenges, including a lawsuit from the Unitedย States Securities and Exchange Commission alleging XRPย Rippleย (XRP) as a security. Nonetheless, a recent ruling deemed XRPย Rippleย (XRP) โnot necessarily a security on its face.โ This acquisition comesย after Rippleโs purchase of cryptocurrency custody services provider Metaco in May.
Ripple Expands with Acquisition of Fortress Trust
Ripple has announced its acquisition of Fortress Trust, a cryptocurrency infrastructure startup, allowing the company to broaden its services beyond cross-border payments. The deal includes a license in Nevada, expanding Rippleโs regulatory permits. Fortress Trust, established by Scott Purcell, assists large enterprises in navigating digitalย currencies. Ripple, known for its blockchain-based messaging system, partners with corporations like Modulr, Nium, and SBI Remit. Ripple uses XRPย Rippleย (XRP), its own digitalย currency, for cross-border payments. The company has faced legal challenges, including a lawsuit from the Unitedย States Securities and Exchange Commission regarding XRPโs classification as a security. Nonetheless, a recent ruling favored Ripple by stating that XRPย Rippleย (XRP) is โnot necessarily a security on its face.โ This acquisition comesย after Rippleโs previous purchase of cryptocurrency custody services provider Metaco in May.
Hot Take
Rippleโs acquisition of Fortress Trust demonstrates the companyโs commitment to expanding its presence in the cryptocurrency industry. By acquiring a startup specializing in cryptocurrency infrastructure, Ripple can diversify its offerings and move beyond its core focus on cross-border payments. This strategic move allows Ripple toย win a license in Nevada and further strengthen its regulatory permits. Regardlessย of facing legal challenges in recent years, Ripple has continued to make strides in its business, particularly outside of the Unitedย States With this acquisition, Ripple intendsย to improve the customer experience within its payments and liquidity solutions. Overall, Rippleโs expansion efforts position the company for future growth and enable it to serve a broader range of customers and use cases in the cryptocurrency space.
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