Blockchain payment protocol company has acquired Fortress Trust, a Nevada-based chartered trust firm focused on crypto and Web3. The financial terms of the deal were not disclosed, but it is known that the acquisition price was lower than the $250 million Ripple paid for Metaco, a custody firm it purchased in May.
Fortress Trust, a subsidiary of Fortress Blockchain Technologies, provides financial and regulatory structure for blockchain companies. It holds an array of regulatory licenses, including the New York BitLicense and money transmitter licenses in more than 30 U.S. states. This acquisition allows Ripple to inherit these privileges.
Monica Long, president at Ripple, emphasized the strategic importance of this acquisition. “Licenses are a powerful enabler to build and deliver best-in-class customer experiences for enterprises using Ripple’s crypto infrastructure across our payments and liquidity solutions,” she said. “Acquiring Fortress Trust affords us a lot of optionality to both improve the current customer experience in our existing products and explore new, complementary products – all in service of becoming the one-stop shop for enterprises looking to convert, store, and move value on blockchain around the world.”
Despite some skepticism due to previous issues faced by Prime Trust, the parent company of Fortress Trust, Ripple’s decision to acquire Fortress appears to be well-considered. Prime Trust had lost access to its wallet, leading to investor backlash. However, Ripple had previously invested in Fortress Blockchain Technologies in August 2022.
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