Ripple's Acquisition: Fortress Trust

Ripple's acquisition of Fortress Trust, a Web3 financial institution, expands its regulatory licenses and accelerates its crypto infrastructure.

Sep 11, 2023 - 00:08
Sep 11, 2023 - 10:47
Ripple's Acquisition: Fortress Trust
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Ripple's decision to acquire Fortress Trust, a financial institution known for its Web3 financial, regulatory, and technological infrastructure, is a testament to its forward-thinking approach. With this acquisition, Ripple inherits a Nevada Trust license from Fortress Trust, further expanding its portfolio of regulatory licenses. This addition complements Ripple's existing regulatory approvals, which span multiple jurisdictions, including the US and Singapore. However, the finalization of this major deal remains contingent upon due diligence and regulatory approvals.

Interestingly, Ripple's association with Fortress isn't new. In 2022, Ripple became a minority investor in Fortress Blockchain Technologies, the parent company of Fortress Trust. Brad Garlinghouse, Ripple's CEO, highlighted their familiarity with Fortress Trust's team and business model, stemming from their early investment. He emphasized that the acquisition aims to accelerate Ripple's endeavors in crucial areas of crypto infrastructure.

Fortress Trust has carved a niche for itself by offering robust financial infrastructure for digital entities. Their expertise spans a range of services:

  • IRA Services: Catering to the retirement needs of the crypto community.
  • Asset Custody: Ensuring the safekeeping of digital assets.
  • Payment Processing: Streamlining transactions in the digital realm.
  • Compliance: Addressing critical issues like Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
  • Crypto Liquidity: Facilitating easy and efficient trading of cryptocurrencies.
  • Security: Prioritizing data and asset protection for their clientele.

Ripple's acquisition of Fortress Trust isn't an isolated event. Earlier in the year, Ripple acquired Metaco, a Swiss-based crypto custody provider, for a whopping $250 million. This move was aimed at enhancing Ripple's capabilities in tokenized asset custody, issuance, and settlement. These acquisitions form part of Ripple's strategy to diversify its revenue streams and bolster its global presence, especially beyond the US market.

Ripple plans to invest in Fortress’ parent company, Fortress Blockchain Technologies, and its affiliated firm FortressPay services, the announcement reveals. Ripple claims to be present in over 55 countries, offering payout services through blockchain technology.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.