In a strategic move to solidify its regulatory presence in the United States, financial technology giant Ripple has announced the acquisition of Fortress Trust, a significant player in the blockchain regulatory and technology infrastructure space. This development, unveiled on September 8, marks a notable expansion in Ripple’s ever-growing portfolio of licenses in the country.
Fortress Trust, armed with a coveted Nevada Trust license that grants it the authority to custody financial assets, offers critical regulatory and technological support to blockchain organizations. This acquisition bolsters Ripple’s already impressive array of licenses, numbering more than 30 across the nation, including the coveted BitLicense required for digital currency businesses operating in New York.
Monica Long, President at Ripple, emphasized the importance of licenses in providing top-tier customer experiences for enterprises. She noted that licenses are a powerful enabler to build and deliver best-in-class customer experiences for enterprises. The official announcement underlined how the technology and licensing assets of Fortress Trust align seamlessly with its business and product roadmap.
Ripple’s involvement with Fortress Trust dates back to 2022 when the company made an initial investment through a seed round. However, specific financial details regarding the recent transaction remain undisclosed.
Ripple CEO Applauds Acquisition Amid Crypto Industry Challenges
Brad Garlinghouse, CEO of Ripple, praised Fortress Trust’s remarkable journey, stating, “As an early investor in Fortress Blockchain Technologies, we’ve had a chance to get to know the team, its vision and technology. Since their launch in 2021, they’ve built an impressive business with recurring revenue and a strong roster of both crypto-native and new-to-crypto customers.”
Ripple’s recent string of strategic acquisitions comes at a time of market turbulence within the crypto industry. In May, the company announced a significant move by acquiring Metaco, a Swiss digital asset custodian and tokenization provider, for a substantial sum of $250 million. Earlier in January, an executive had already forecasted a wave of acquisitions in 2023 as crypto companies sought to bolster their capabilities.
As part of this new acquisition, the blockchain firm intends to invest in Fortress Trust’s parent company, Fortress Blockchain Technologies, along with its affiliated entity, FortressPay services. With a global presence spanning over 55 countries, the blockchain firm continues to provide blockchain-based payout services, further solidifying its standing in the crypto world.